SATENDRA VIKRAM SINGH

M/s. Shaifali Steels Limited, Kalol (Appellant 1) are engaged in manufacturing of Ferro Silicon Magnesium Alloy, CI Castings, Metal Roll etc. In ER-1 return for February-2009, duty payable was shown as Rs. 91,91,803/- against which, the Appellant has shown payment of Rs. 85,52,903/- from Cenvat Credit account and the balance payment of Rs. 6,38,900/- through TR6 Challan No. 16 dated 16.03.2009. Later on, it was found during investigation that they had paid the said amount of Rs. 6,38,900/- on 20th August, 2009 as against 5th March, 2009 which was the due date of payment. As appellant had paid the balance duty beyond 30 days from the due date, in view of Rule 8 (3A) of the Central Excise Rules, 2002, they were required to pay excise duty for each consignment without utilizing the Cenvat Credit. It was found that the appellant had utilized Cenvat credit of Rs. 3,60,18,851/- for payment of Central Excise duty for the period 05.04.2009 to 01.09.2009.

1.1 The department issued a Show Cause Notice dated 06.05.2010 proposing recovery of duty of Rs. 3,60,18,851/- under Section 11A of the Central Excise Act, 1944 read with Rule 8 (3A) of the Central Excise Rules, 2002