2003 (11) TMI 185 - AT - Central Excise

Summary

Issues involved: Modvat/Cenvat reversal, return of capital goods, short-receipt of material, sale of old used material, irregular availment of credit, imposition of penalty under Section 11AC.

The judgment addressed various issues related to Modvat/Cenvat reversal. Firstly, concerning the return of capital goods, the appellants had to return goods not in accordance with specifications, for which they had availed duty credit of 50%. The Department raised the full duty amount, but the Tribunal found in favor of the appellants, granting a refund of the credited amount of Rs. 27,750.50.

Regarding the short-receipt of material and irregular availment of credit, these items were not pressed by the appellants. However, concerning the sale of old used material, the Counsel argued that such sales do not attract duty, citing relevant case law. The Tribunal agreed, referencing previous decisions, and granted a refund of Rs. 1,33,162 to the appellants.

Lastly, the appellants contested the imposition of penalty under Section 11AC, arguing it was not in accordance with the law. After considering the submissions and the relief granted to the appellants, the Tribunal set aside the imposition of the penalty under Section 11AC. The appeal was disposed of accordingly.