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IN RE: JOHNSON AND JOHNSON LTD.

2001 (11) TMI 799 - COMMISSIONER OF C. EX. (APPEALS), MUMBAI-II

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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1)(i) and (4) of Central Excise Rules, 1944 and credit so availed is recoverable under proviso to sub-rule (1)(i) of Rule 57-I of Central Excise Rules, 1944. Penal action under Rule 173Q(1) a(bb) and (d), read with Rule 210 ibid was also proposed. 3. The adjudicating authority in his order-in-original observed that: (i) The judgment cited by the appellant in their defence are in rem and not personam . (ii) It is on record that, the appellant did not submit statement showing the details of i .....

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Rules. 4. The adjudicating authority confirmed the demand raised by the Department and also imposed penalty on the appellant. 5. Aggrieved by the same, the appellant filed an appeal against aforesaid order-in-original. In the written submission they state that: (i) The impugned order-in-original is arbitrary ipsi-dixi in nature and not a speaking order. (ii) They were maintaining a consolidated RG 23A Pt. II, submitting RT-12 return along with RG 23A Pt. II from time to time, which we .....

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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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called for by the department were furnished by them in March 95 and July 95, respectively. Show cause notice which purports to cover the period from April 94 to November 94, is dated 12-3-1996, which is beyond the period of six months. Extended period is not applicable where there is no intent to evade duty deliberately. Reliance is placed on following judgments in the matter viz. M/s. Cosmic Dye Chemical, 1995 (75) E.L.T. 721 (S.C.) and M/s. Pushpam Pharmaceuticals Ltd. reported in 1995 (78) E .....

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r-in-original. 8. The primary issue before me is regarding use of the Modvat credit for payment of duty on final product in the manufacture of which the said inputs allegedly had not been actually used. 9. It can be inferred that, the department insisted for one to one co-relation as in the show cause notice it alleged that the appellant neither submitted a statement indicating the input credit availed and utilized in respect of each final product manufactured nor had maintained any re .....

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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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rding one to one co-relation. The said ruling settled the issue stating that, - The rule provided inter alia that credit of duty could be utilized towards payment of duty on the final product in or in relation to the manufacture of the final product, which are intended to be used in sub-rule (1) of Rule 57G. The terms inputs and final product have been defined in Rule 57G, as the excisable goods used in or in relation to the manufacture of the final product and as finished excisable goods respec .....

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