9911796707
TMI Blog2003 (2) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... copper wires. They purchased copper wires from M/s. Kejriwal Enterprises and M/s. Priyanka Metal Overseas under the cover of 29 gate passes during the years 1991-92 and 1992-93. The purchased copper wire was used by them in the manufacture of cables and Modvat credit was taken in respect thereof on the basis of gate passes. However, during the enquiry by the officers of Central Excise, it revealed that Kejriwal Enterprises and Priyanka Metal Overseas did not manufacture the copper wires and that they only issued the gate passes to the appellants for claiming Modvat credit. Accordingly, the appellants were served with the show cause notice for disallowing Modvat credit of Rs. 6,37,246/- on the ground that the copper wire purchased by them f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the impugned order. 5. We have heard both sides and gone through the record. From the record and the perusal of the order-in-original as well as the impugned order, it is evident that Modvat credit of the disputed amount was availed by the appellants on the strength of 29 gate passes during the years 1991-92 and 1992-93. The copies of those gate passes were even submitted by them along with RT 12 returns filed by them during those years. Even entries were also made by them in the RG 23A register. Shri Subhash Gahrotra, partner of the appellant in his statement dated 18-9-95, when enquiry was being conducted by the officers of the Central Excise department against Kejriwal Enterprises and Priyanka Metal Overseas, about their manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts purchased the raw material through the disputed gate passes. There is also no evidence to suggest if the goods were never manufactured by the appellants from the material received by them under the cover of the disputed gate passes. From their record, there is nothing on the record to suggest, if any clue or material was found about the actual non-receipt of the raw material by them and non-production of the final product out of that material during the period in question. Therefore, in our view, the Modvat credit of the disputed amount could not be disallowed to the appellants. 7. Apart from this, the demand for the recovery of the Modvat credit amount in dispute from the appellants, is on the face of it time-barred. The Modvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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