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TMI Blog2008 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount under Rule 57-I(1)(ii) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 with interest under Section 11AB of the Act read with Rule 57-I(5) of the Rules, 1944. Penalty of equal amount was also imposed under Rule 173Q(1)(bb) of the Central Excise Rules 1944 read with Section 11AC of the Central Excise Act, 1944. 2. The respondent who is a manufacturer of excisable goods had contravened the provisions of Rules 57AC and 57AE of the Central Excise (Amendment) (Second Amendment) Rules, 2000 as applicable during the relevant period by wrongly availing Modvat credit amounting to Rs. 1,83,445/- on the basis of sham invoices issued by M/s. HBR Steel Corporation. Show cause notice was issued in this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in transporting goods were, in fact, gypsy, three wheeler, motor cycles, scooters, motor cars, oil tankers and so on, or non-existent and they apparently would not have been used for transporting goods. It may be mentioned here that the particulars and description of the vehicles were verified from the Transport Department of the Government of Punjab. Based on these facts, notice was issued to the appellant to show cause why Modvat credit amounting to Rs. 1,83,445/- availed of by the appellant on the basis of invoices of M/s. HBR Steel Corporation should not be reversed and the amount recovered as per the provisions of Central Excise Act and Central Excise Rules with interest, and penalty be not imposed for violation of the relevant provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be issued on 23-3-2005 by invoking the extended period. The submission has been noticed only to be rejected. Section 11 A of the Central Excise Act envisages issuance of show cause notice within the period one year from the relevant date as defined therein. Where the duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, but where such non-levy or non-payment, short-levy or short payment or erroneous refund is actuated by fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of the Act or the Rules, the notice can be issued within five years from the relevant date, as per proviso to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. I thus do not find any substance in the submission that the proposed action was time-barred. 7. Counsel also submitted that even if it is accepted that no transportation took place by the vehicles specified in the show cause notice, it cannot be said that the movement of goods covered by other invoices too was fictitious. The observation of the Commissioner was also to the effect that there was every possibility of a clerical mistake in noting the vehicles numbers etc. on the invoice because most of the truck drivers and staff engaged in the transport of the goods are illiterate. It may be, as observed by the Commissioner, that under the Central Excise Law, benefit cannot be denied because of wrong or non-mentioning of the vehicle nu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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