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2017 (7) TMI 94 - HC - Central ExciseMODVAT credit - wrong availment of credit - tin plates having thickness of more than 0.26 mm - it is the case of petitioner that in the absence of any independent finding that these inputs were found to be of thickness exceeding 0.24 mm., the demand made in respect of this amount is not sustainable - Held that: - As per Rule 173G, it was incumbent on the part of respondent no.1 to maintain accounts of production, manufacture, storage, delivery or disposal of goods including the material received for or consumed in the manufacture of excisable or other goods. The purpose of maintaining the accounts of raw material was obviously for checking of evasion of excise duty. Respondent no.1 was required to follow the procedure prescribed in the Rule for maintaining the accounts. The thickness of the tin plates seems to have been deliberately kept ambiguous in Anx.'B2'. However, from Column No.5 of Anx.B2', it is clear that the tin plates having thickness ranging from 0.30 mm. to 0.49 mm. also were purchased by respondent no.1. It was, therefore, necessary for respondent no.1 to specifically classify and state the quantity of the tin plates, which were having thickness below 0.24 mm. as well as above 0.24 mm. The petitioner has rightly held that respondent no.1 has deliberately suppressed the said information. If that be so, respondent no.1 cannot be allowed to take benefit of its own wrong and it will have to be held that the tin plates described in Anx.'B2' were of thickness above 0.24 mm. and were not used by respondent no.1 for manufacturing oval tin cans. Penalty - Rule 173Q of the Rules - Held that: - respondent no.1 has obtained MODVAT credit wrongly in the sum of ₹ 14,50,994/plus ₹ 23,87,575/having total of ₹ 38,38,569/. Consequently, in view of this Rule, respondent no.1 was liable to pay penalty as contemplated under this Rule. Petition allowed - decided partly in favor of petitioner.
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