Gopal Krishan Vyas, J. - (1.) The instant central excise appeal under Section 35-G of the Central Excise Act, 1944 has been filed by the appellant- Firm so as to challenge the order dated 28th of October, 2016 passed by Principal Bench, Custom, Excise and Service Tax Appellate Tribunal, New Delhi (CESTAT) in Appeal No.E-55640/2013 to the extent of confirming the demand of duty and interest with grant of extraordinary cost to the appellant.
(2.) Briefly stated, facts of the case are that the appellant is engaged in manufacturing of Electric Insulator and was availing Cenvat Credit Duty paid on inputs. The appellant cleared some of the furnished excisable goods to Mundra Ultra Mega Power Project without payment of duty under Notification No.46/2008-CE dated 14.08.2008. The appellant firm was not maintaining separate account of inputs used for manufacturing of exempted final products, therefore, proceedings were initiated against the appellant firm raising demand and recovery of amount equal to 10% of value of such exemption goods cleared in terms of Rule 6 (3) (i) of the Cenvat Credit Rules, 2004 (Rules of 2004). The period involved was May, 2009 to June, 2009. A show cause notice was issued on 16.04.2010 demanding 10% amount in terms of Rules of 2004.
(3.) The appellant filed its reply on 06.07.2010 and pleaded that provisions of sub-rules (1), (2) and (3) of Rule 6 of the Rules of 2004 were not applicable in its case and they were covered by Rule 6 (6) (vii), therefore, the appellant is not liable to pay 10% of the value of the exempted goods. The respondent No.1 passed order-in-original No.8/11 CE / JP-II-Addl. Comm. dated 02.02.2011 confirming the demand of Rs.22,88,591/- being 10% amount and also imposed equal penalty under Section 11 AC of the Central Excise Act, 1944.;