2009 (3) TMI 803 - AT - Central Excise

Summary

The appellate tribunal CESTAT, Mumbai, under the direction of Shri P.G. Chacko, J., heard an appeal where the appellants failed to appear. The case involved the confirmation of a demand and penalty by the Assistant Commissioner of Central Excise, which was later set aside by the appellate authority. The party then took Modvat credit, which was opposed by the department. The Dy. Commissioner ordered recovery of the amount and imposed a penalty. The Commissioner (Appeals) ruled against the party regarding the Modvat credit but vacated the penalty. The learned SDR argued that the party's actions were illegal based on a previous tribunal decision. The tribunal agreed, upholding the impugned order and dismissing the appeal. The decision was based on the lack of provision in the Central Excise Act/Rules for taking credit without proper sanction, and the need for the party to claim a refund instead of taking credit. The appeal was thus denied.