9911796707
TMI Blog1999 (11) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondent. [Order per : J.H. Joglekar, Member (T)]. - The applicants availed of Modvat credit on capital goods in terms of Rule 57Q of the Central Excise Rules, 1944 during the years 1994-95, 1995-96 and 1996-97 to the extent of Rs. 43,13,347/-. Under the said rule the credit was admissible only where the manufacturer had not claimed depreciation under Section 32 of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal and the present application for waiver and stay of the sums. 2. Shri K.P. Joshi, learned counsel arguing for the applicants, claimed that this was a bona fide error which came to their notice after the department's investigation. Subsequently they filed revised IT returns waiving the earlier claim of depreciation. In this manner, it is his submission that the benefit taken by the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessees, apart from this ground, contained several other grounds and the sum total was nil and return was filed creating no liabilities on the assessees under the Income-tax Act. In other words he is not able to show the discharge of the resultant obligations under the Income-tax Act. 4. We also find that the mere fact that the benefit originally taken was subsequently waived may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the continued wrong declaration over three years and also considering that the assessees are financially stable, we direct them to deposit Rs. 13,07,707/-towards the penalty imposed and a sum of Rs. 25,00,000/- towards the inadmissible Modvat credit. This payment is to be made within ten weeks of the receipt of this order. Compliance to be reported on 1st December, 1999. X X X X Extracts X X X X X X X X Extracts X X X X
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