CESTAT, CHENNAI BENCH
Mount Mettur Pharmaceuticals Ltd.
v.
Commissioner of Central Excise
P. G. Chacko, Judicial Member
and P. Karthikeyan, Technical
Member
Stay Order No. 682/2007
E/PD/38/2007
IN E/89/2007
July 5, 2007
Rule 14, read with rules 6 and 15, of the Cenvat Credit Rules, 2004 -
Recovery of Cenvat credit wrongly taken or erroneously refunded - Period
16-5-2005 to 31-3-2006 - Assessee had used furnace oil as an input for
generation of steam which was in turn used as input in manufacture of dutiable
and exempted goods - Assessee had availed cenvat credit on furnace oil (fuel) -
Department demanded 10 per cent of sale price of exempted final products
cleared by assessee during relevant period on ground that assessee had failed
to maintain separate accounts in respect of fuels intended for use in
manufacture of dutiable and exempted final products - Penalty was also imposed
upon assessee under rule 15 - Whether assessee had not made out prima facie
case against demand of duty or against penalty but, taking into account its
financial hardship, assessee was to be directed to pre-deposit part of penalty
amount and on deposit of same, rest of demand was to be waived till disposal of
appeal - Held, yes [Para 2]