- (1.) The appellant, challenges orders dated 28-10-2004 (Annexure A-9) and 6-7-2011 (Annexure A-12) : [2013 (295) E.L.T. 709 (Tri. - Del.)], and 15-3-2013 (Annexure A-14), passed by the Additional Commissioner, Central Excise, Delhi-IV, Faridabad, the Customs, Excise & Service Tax Appellate Tribunal, Principal Bench, Court-I, New Delhi and Customs, Excise & Service Tax Appellate Tribunal, Principal Bench, Court-Ill, respectively. The appellant is a manufacturer of processed cotton, man-made and hosiery fabrics and was paying Central Excise Duty after availing deemed credit as per rates fixed under notification issued under Section 11 of the Cenvat Credit Rules. The Deputy Commissioner, Central Excise, Division-V, Faridabad, vide order dated 31-10-2002, ordered forfeiture of the facility of deferred payment of duty on fortnightly basis and directed the appellant to pay Central Excise Duty on consignment basis for a period of two months from the date of communication of the order. During the period of forfeiture i.e. 1-2-2002 to 13-3-2002, the appellant continued to avail deemed credit of basic excise duty and additional excise duty to the tune of Rs. 19,82,917/-. The appellant also utilised the same for payment of duty, in contravention of Rule 8(4) of C.E. (No. 2) Rules, 2001 and Rule 8(4) of the Central Excise Rules, 2002 etc.
(2.) The Deputy Commissioner, Central Excise, Division-V, Faridabad, vide order dated 23-9-2002, also ordered for forfeiture of facility of deferred payment of duty on fortnightly basis in accordance with Rule 8 of the Central Excise Rules, 2002 and directed the appellant to pay Central Excise Duty on consignment basis etc. for a period of two months from the date of communication of the said order. The appellant was, therefore, required to pay the entire amount of duty through PLA on daily basis, without utilising the deemed credit during the period of forfeiture i.e. 25-9-2002 to 24-11-2002 but during the period of forfeiture, continued to avail deemed credit of basic and additional excise duty to the tune of Rs. 23,96,731. The appellant also utilised this amount for payment of duty in contravention of Rule 8(4) of the Central Excise Rules, 2002. The appellant also appeared to have made short payment of duty during 25-9-2002 to 24-11-2002.
(3.) The appellant was issued two show cause notices, the first dated 5-3-2003, demanding duty of Rs. 19,82,917/- and the second dated 27-5-2003, demanding duty of Rs. 23,96,731/-. The appellant was also called upon to reply, why deemed credit of Rs. 19,82,917/- availed/utilised during February, 2002 to March, 2002 and Rs. 23,96,731/- availed/utilised from 25-9-2002 to 24-11-2002, for payment of basic and additional excise duty may not be disallowed. The appellant was also called upon to show cause as to why interest should not be charged under Section 11AB of the Central Excise Act, 1944 and penalty be not imposed under Rule 25 of the Central Excise No. 20 Rule 2002 and Central Excise Rules, 2002, for contravention of Rule 8. The appellant submitted a joint reply to the two show cause notices, denying any violation etc.;