2004 (1) TMI 450

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..... er]. In this appeal, the appellants have challenged the validity of the impugned order-in-appeal vide which the Commissioner (Appeals) has affirmed the duty demand and the penalty on the appellants. 2. The duty has been affirmed on the appellants on account of detection of shortage of the raw materials/inputs at the time of checking made on 28-2-1998 by the officers of the Central Excise o .....

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..... perusal of the record shows that the appellants are engaged in the manufacture of polythene bags, MV parts of plastics and plastic parts of electric fans. They filed Modvat declaration under Rule 57G for availing Modvat credit on the inputs. The perusal of the statutory records maintained by them for the period 1-4-1997 to 19-2-1998 revealed that they purchased modvatable raw materials of 69,330 .....

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..... of the stock. On the raw materials found short, the appellants are legally duty bound to pay the duty for having availed the credit thereon. The impugned order in this regard is perfectly valid. The ratio of law laid down in Sanket Food Products P. Ltd. (supra) is not attracted to the case of the appellants. In that case, the allegation of clandestine removal of gutkha was based on the bags found .....

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