TMI Blog2005 (12) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. [Order]. The appellant is a manufacturer of Alum (Alumina Ferric) which is liable to Central Excise duty. The main input is Sulphuric acid and the appellant had been taking Modvat credit in respect of duty paid Sulphuric acid purchased. Under the impugned order, Modvat credit of about Rs. 1.5 lakhs has been denied in respect of purchases of Sulphuric acid during the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r concentration this position was reported to the supplier and supplied gave rebate in price. This position was explained by Mr. Agarwal, Executive Director on the date of visit itself. The appellant had also placed its registers as well as credit notes from the suppliers in support of the explanation. All the same, the appellant failed in adjudication as well as in the first appeal. Thus, the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not indicative of any sinister effort to evade Central Excise duty either by removing inputs or finish products without payment of duty. The appellant s explanation merits acceptance, particularly, in view of the fact that its suppliers are other manufacturers, including the Central Govt. Public Sector company. In these circumstances, the denial of Modvat credit has to be held as not warrante ..... X X X X Extracts X X X X X X X X Extracts X X X X
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