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2013 (9) TMI 932 - ALLAHABAD HIGH COURTMODVAT Credit - Whether MODVAT Credit can be availed by the assessee on the basis of certificate issued by superintendent preventive – Held that:- The Tribunal had not committed any error in allowing the credit, as it has recorded the findings that the glass shells were not going to any customer but were to be shifted to a location outside the factory - Non-generation of invoice was the only deficiency in the whole transaction, but this does not erase the duty-paid character of the glass shells, which were received from outside the factory - The re-entry of these glass shells in the factory for use in the manufacture of final product has to be held as entry of duty-paid inputs and the credit cannot be disallowed. Levy of penalty - Whether the finding of facts for clandestine removal of goods recorded by adjudicating authority and the same has been upheld upto CEGAT can be overlooked in subsequent proceedings – Held that:- In the order awarding penalty, there is no such finding that the goods were brought from outside the factory, without payment of duty - It was only because of reversal of entry on duty-paid goods, the penalty was imposed. An affidavit has been filed enclosing certificate of Superintendent (Preventive), verifying that the glass shells were stored outside the factory due to shortage of space in the factory premises - The penalty order could not be a ground, for not allowing Modvat Credit on the finished goods - The grounds raised in the appeal do not raise any substantial questions of law to be considered in the appeal.
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