HMM COACHES LIMITED Vs. CCE

JUDGEMENT

(1.) THIS is an appeal against the order of the Commissioner No. 01/Commr/PKL/2007 dated 24.01.2007.

(2.) HEARD both sides.

(3.) SHOW cause notice was issued seeking to recover inadmissible cenvat credit amounting to Rs. 15,79,86.975/ -. Commissioner has held that the appellant has taken and utilized inadmissible credit in contravention of the provisions of Rule 3 of Cenvat Credit Rules, 2004; they should not have taken the credit; they should have availed the benefit of Notification No. dated 01.03.2002; however, he held that the extended period is not invokable; accordingly he confirmed the demand of, Rs. 8,84,63,492/ - for the period April 2005 to Feb. 2006 under Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A of Central Excise Act, 1944; he ordered recovery of interest on the confirmed demand of duty of Rs. 8,84,63,492/ -. He imposed a penalty of Rs. 8,84,63,492/ -.