Customs, Excise and Gold Tribunal - Mumbai
Cellulose Products Of India Ltd. vs Commissioner Of Customs And Central ... on 31 October, 2003
ORDER Jyoii Balasundaram, Member (J)
1. The appellants are engaged in the manufacture of Monochloro Acetic Acid (MCA) and are availing modvat credit facility on acetic acid, acetic anhydride and liquid chlorine used in the manufacture of the above product cleared by them on payment of duty as well as at nil rate of duty under Notification 43/88-CE. Therefore the bar of Rule 57C providing that no credit on specified duty paid on inputs used in the manufacture of final products is allowed if the final product is exempt from whole of duty of excise leviable thereon or it is chargeable to nil rate of duty, was found to be attracted and the two show cause notices dated 12/05/1993 and 26/08/1993 were issued to the appellants proposing to recover credit wrongly taken on inputs used in the manufacture of MCA cleared at nil rate of duty and proposing imposition of penalty.
2. The Assistant Commissioner confirmed both the notices, totaling a duty demand of Rs. 4,21,979/- and also imposed a penalty of Rs. 50,000/- on the appellants. The Commissioner (Appeals) upheld the order of adjudication, following the decision of the larger bench of the Tribunal in the case of Kirloskar Oil Engines Ltd. 1994 (73) ELT 835; hence this appeal.
3. None is present for the appellants in spite of notice, hence we heard the learned SDR and perused the records.
4. We find that the larger bench decision cited supra is applicable on all (SIC) the facts of the present case. The appellants have not brought to our notice that larger bench decision has been reversed or overruled or any contrary decision of a High Court or the apex Court. Hence following the ratio laid down by the larger bench, we uphold the impugned order and reject the appeal.