- (1.) This appeal has been preferred under Section 35(G) of the Central Excise Act, 1944 (for short, "the Act") by revenue against the order dated 26-8-2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (Annexure P-3), proposing following substantial question of law : Whether the Tribunal is correct in allowing credit utilized by the parties before availing exemption Notification No. 6/2000 based on quantity of clearances, when the same credit relates to inputs lying in stock or used in finished excisable goods lying in stock on the date when the option for exemption was exercised especially in view of specific provisions Rule 57AG of the Central Excise Rules, 1944?
(2.) The assessee was availing the benefit of Notification No. 6/2000-C.E., which provided nil rate of duty in respect of their finished goods.
(3.) A show-cause-notice was issued to the assessee, asking for reversal of credit in respect of inputs lying in stock under process when the assessee started clearing goods without payment of duty. After hearing the assessee the demand of duty was confirmed. The assessee was also required to pay interest and penalty.;