2007 (2) TMI 550 - AT - Central Excise

Summary

Issues involved: Appeal against duty demand, denial of Modvat credit, penalty imposition.

Summary:
The appeal was filed against Orders-in-Appeal confirming duty demand and penalties imposed by the Original Authority. The appellants, manufacturers of excisable goods, argued that duty demand was excessive and Modvat credit was wrongly denied. The lower authorities did not consider evidence of duty paid inputs received by the appellants. The appellants cited case laws supporting their claim for Modvat credit even in cases of clandestine removal. The Tribunal found that the duty demand was not valid as the Modvat credit available to the appellants exceeded the duty demanded. The impugned order was set aside, and the appeals were allowed with consequential relief. Penalties imposed on the appellants were deemed unsustainable.

In conclusion, the Tribunal ruled in favor of the appellants, highlighting the importance of considering Modvat credit and duty calculations in excise duty cases.