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2001 (11) TMI 799

Modvat/Cenvat - Modvat credit on inputs - Denial of - Demand - Limitation - RJB/M.II/327/2001 - Dated:- 19-11-2001 - Shri R.J. Beley, J. REPRESENTED BY : S/Shri J.R. Cama, Advocate with K.B.R. Swamy, for the Appellant. [Order]. Brief facts of the case are that, the appellant during the period 4-1-1994 to 11-1-1995, allegedly availed irregular Modvat credit, inas- much as they maintained consolidated RG 23A Pt. II register and did not submit any statement indicating the input credit availed and u .....

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nput credit availed and utilized in respect of each finished product as such the point of time bar is untenable. (iii) The appellant did not maintain any record to ensure that, the credit of duty availed on inputs had been utilised for payment of duty on those final products only, for which they were intended as per declaration filed by them under Rule 57G of Central Excise Rules, 1944. Thus statutory provision, were contravened by the appellant by not following the procedure as envisaged in the .....

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Cables and Wire Ltd. reported in 1993 (68) E.L.T. 256 (T), and M/s. Sawottam Ispat Pvt. Ltd. reported in 1989 (41) E.L.T. 181 (T). (b) Modvat credit is also not deniable where common inputs have been utilized in manufacture of several final product. Reliance in case of M/s. Ideal Electronic reported in 1997 (96) E.L.T. 94 (T). (c) Credit of duty on common input can be utilized towards payment of duty on any of the final product covered by the declaration reliance placed in case of M/s. Nisha Co .....

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.L.T. 401 (S.C.). (vi) When there is no duty payable the question of imposing penalty does not arise. 6. The appellant requested for personal hearing which was granted to them on 3-10-2001, which was attend by S/Shri J.R. Cama, Advocate and K.B.R. Swamy who reiterated the submissions and also brought to the notice the contrary facts with respect to order-in-original. 7. I have carefully gone through the case records, the show cause notice the submission made in appeal and impugned orde .....

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nto the factory , held that, the demanded duty is recoverable under Rule 57-I of Central Excise Rules, 1944, and brushing aside the case laws cited by the appellant in their defence, without elaborating as to how the case laws relied upon by the appellant are not applicable and are contrary to the issue in the case and failed to illustrate with example, any input on which credit was availed but was not utilized for payment of duty on this final products for which they were intended. I therefore .....

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tively. Therefore, so long as the duty paid on any of the goods used in or in relation to the manufacture of final product used in payment of duty in the excisable goods there is compliance of sub-rule (3) of Rule 57F. 12. I therefore agree with the appellant s argument that, insistence for one to one co-relation of Modvat is negatived by use of the word intended . The significance of which is held by Hon ble CEGAT in above said order which also states that, if the Rule did not contain this .....

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