DAVANGERE SUGAR COMPANY Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS appeal is directed against the Order -in -Appeal No. 69/2009 -C.E., dated 15 -7 -2009.

(2.) THE relevant facts that arise for consideration are that the Appellants are manufacturers of sugar and molasses falling under sub -heading 1701 11 90 and 1703 10 00 respectively of Central Excise Tariff Act, 1985. The Appellants are registered under Central Excise and are availing the facility of Cenvat credit under provisions of Cenvat Credit Rules, 2004.

(3.) THE learned Chartered Accountant, appearing on behalf of the Appellant, submits that the Assessee is not challenging the amounts reversed by them along with interest. It is his submission that they are challenging the amount of penalty imposed by the adjudicating authority under Section 11AC and upheld by the Commissioner 'Appeals). He would submit that during the relevant period, provisions of Rule 6 of CENVAT Credit Rules, 2004, are not applicable in this case as the credit sought to be denied by the lower authorities is in respect of credit of Service Tax paid on input services. He would draw my attention to Rule 15 of the CENVAT Credit Rules, 2004. It is also his submission that the said Rule has been amended from 27 -2 -2010 wherein provisions of Rule 15(2) and (3) included the input services on which credit has been wrongly availed. He would submit that before the amendment, Rule 15(3) will only be applicable and at the most they are liable for penalty of an amount of Rs. 2000/ -.