IND-SWIFT LABORATORIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in the present writ petition is to the order, Annexure P-11, dated 16-8-2007 calling upon the petitioner to deposit a sum of Rs. 49,27,473/- towards the balance amount of interest in pursuance of the order passed by the Settlement Commission on 19-1-2007.

(2.) The petitioner company is engaged in the manufacture of bulk drugs classifiable under Chapter 30 of the First Schedule to the Central Excise Tariff Act, 1985 (for short "the Tariff Act"). The petitioner during 1-11-2001 to 31- 3-2006 received invoices. On the basis of such invoices, the petitioner claimed CENVAT credit of Rs. 6,50,44,412/-. Out of the said amount, the petitioner utilized credit of Rs. 5,71,47,148/- only. On 8-3-2006, staff of the Director General of Central Excise Intelligence searched factory as well as corporate office of the petitioner. The Directors of the company admitted wrong availment of above-said CENVAT credit. It is the case of the petitioner that a sum of Rs. 4 crores was deposited through 8 TR-6 challan in the month of March, 2006. In November 2006, the petitioner reversed CENVAT amounting to Rs. 1,45,67,660/-. The petitioner also deposited a sum of Rs. 25,79,488/- through RG 23A Pt-II vide entry Nos. 1766, 1767 and 1768 dated 22-2-2006. Thus, total sum of Rs. 5,71,47,148/- was deposited towards wrongly availed CENVAT credit.

(3.) The petitioner was served with a show cause notice on 8-12-2006 to recover the amount of Rs. 5,66,35,470/- as excise duty and Rs. 5,11,678/- as education cess fraudulently availed by the petitioner under Rule 12 of the CENVAT Credit Rules, 2001-02 and Rule 14 of CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 (for short "the Act"). It was also proposed as to why a sum of Rs. 5,71,47,148/- already deposited by the petitioner should not be appropriated against the credit demanded. The show cause notice was also served for imposition of penalty and interest.