2011 (5) TMI 418 - AT - Central Excise

Pre-deposit of duty and penalty - MODVAT Credit - Irregular availment of MODVAT Credit on the basis of fake and fictitious invoices issued by non-existent and bogus manufacturing units - The said issue decided by the Tribunal in the case of M/s Bhagwati Silk Mills (2011 -TMI - 203593 - CESTAT AHMEDABAD) - Held that set aside the impugned order and remand the matter to the original adjudicating authority for fresh decision by taking into account the observations made in the case of M/s. Bhagwati Silk Mills - The appeal is also allowed by way of remand.

Summary

The Appellate Tribunal CESTAT, Ahmedabad, in the case of irregular availment of MODVAT Credit, set aside the impugned order and remanded the matter to the original adjudicating authority for fresh decision based on earlier Tribunal decision. The appeal was allowed and a stay petition was granted as the appellants had already deposited Rs.70,000.