TMI Blog2000 (4) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 57-I and also imposed penalty of Rs. 50,00,000/- under Rule 173Q on the Company. 2.Briefly, the facts are regarding availment of Modvat credit on melting scrap imported from time to time on Bills of Entry. The Department alleges in the show cause notice infringement of law on four counts :- (a) That the quantity of scrap on which Modvat credit has been taken is in excess of the quantity which was recorded by the assessee's security personnel at the security gate in a register namely Scrap Inward Register (SIR); (b) The second allegation is regarding certain quantities which have been given by the assessee on loan to other manufacturers of similar products who are facing raw material shortage. The department alleges that while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transport documents which had been wrongly made by the clerk in the Port. Learned advocate submits that merely on the grounds of clerical mistakes, Modvat credit should not be denied. Instead, he submits that the entire quantity covered by all the Bills of Entry in a particular Ship in their favour should be considered, as against the total entries in the Scrap Inward Register. He submits that such a correlation has been attempted in a chart contained in the paper book now before us. He submits that such a correlation has not been considered in the order impugned. As against this, the order impugned has simply mechanically gone by the shortages arising out of the physical comparison between quantity in Bill of Entry and quantity entered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey were not relied upon by the show cause notice, the assessees had not bothered to take photocopies thereof. 5.As far as the third allegation at (c) above is concerned, the learned advocate submits that the assessees have already indicated their willingness to remit the duty involved as noted above. 6.As far as the allegation in (d) above is concerned, the Revenue has not led any evidence whatsoever to support their allegation that the goods were infact, removed from the factory after taking Modvat credit. He submits that this is merely an attempt to reach tally figure with respect to the total quantity covered in the Bill of Entry taken together which was 35,168 MTs. He submits that this issue should also be re-examined in the de novo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned, the matter was adjudged by the Commissioner only on a prima facie basis, as can be seen from para 39 of the order impugned itself. As against that the learned Advocate has now submitted a detailed conciliation chart Bills of Entrywise, which were not before the Commissioner for consideration at the original stage. The Tribunal is not expected to enter into such arithmetical re-calculation, therefore, on this count, the matter needs to be remanded to the original authority for re-consideration of the said reconciliation chart along with any other evidence that the appellants may choose to produce before him, when the matter is heard on de novo basis. 9.As far as the question of goods lost either short-shipment or through trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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