DEE KAY EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition seeks quashing of Show Cause Notice dated 19.2.2010, Annexure P-5, under Section 11A of the Central Excise Act, 1944 (for short, "the Act"), requiring the Petitioner to show cause why the demand of duty may not be raised with interest and why penalty be not levied for alleged wrongful availment of CENVAT Credit on inputs/input services.

(2.) Grievance of the Petitioner is that identical Show Cause Notice dated 4.2.2008 was earlier issued to the Petitioner, which was contested by the Petitioner and after due consideration of stand of the Petitioner, the said notice was dropped vide order in original dated 29.10.2009. Plea of the Petitioner that CENVAT Credit on inputs/input services had not been wrongfully availed, was upheld. The finding recorded is as under:

(3.) 2 The noticee in their reply have submitted that they have not availed any cenvat credit of duty paid on inputs / input services for the manufacture of agricultural grade ZnSO4. Verification report was sought from Range Superintendent Assistant Commissioner, CX Division, Yamuna Nagar and Assistant Commissioner, CX Division, Yamuna Nagar vide letter C. No. V(28) Demand/DK/YNR/01/2008/4320 dt. 01.10.09 has confirmed and forwarded the verification report of Range Officer vide his letter dt. 25.09.09 stating that the noticee had not availed any cenvat credit of duty paid on inputs/input services for manufacture of zinc sulphate and that question of payment of amount equivalent to cenvat credit availed does not arise.