2006 (2) TMI 345

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..... appeal is directed against the order-in-appeal dated 30-12-2003 wherein Modvat credit was disallowed. 2. The relevant facts that arise for consideration are that the appellant availed Modvat credit on inputs like caustic soda, flakes, soda ash, sulphonic, descalent, indion etc. The appellants were directed by the Superintendent of Central Excise, Range Lakhmipur - Kheri vide his letter dated 7- .....

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..... eal. 3. The learned advocate submits, that, the appellants are being punished for following the directions of the Range Superintendent. He submitted the Modvat credit is eligible on the inputs and the Tribunal in many of its order has allowed the credit on the same inputs used as descalent. He, further states that the recredit of the amount debited is within the provisions of law as the credit w .....

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..... for the proposition that suo moto credit cannot be availed by the appellants. 5. Considered the submissions made by both sides and perused records. I find from the records that the appellants have reversed the credit availed on the inputs - descalents on the direction of the Range Superintendent of Central Excise incharge of their factory. They have reversed ihe credit in installments from Apri .....

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..... Central Excise. the appellants cannot now cry foul, and avail the benefit of credit on the inputs, by suo motu recrediting the amount. 6. Further, the appellants could have reversed the said Modvat credit under protest to keep their claim intact on those inputs, but the appellants did not do so. In the absence of any protest it cannot now be argued by the appellants that they are eligible for .....

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..... the above finding, the order in appeal, disallowing Modvat on the suo moto credit is upheld. 11. I find that the availment of the suo motu credit by the appellants is a knee-jerk reaction, emanating from the feelings of loss of credit, does not need to be punished by way of imposing equivalent amount of penalty. The penalty imposed on the appellants on this count is set aside. 12. Under the ci .....

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