2004 (11) TMI 200 - AT - Central Excise

Summary

Issues: Rectification of mistake in the Tribunal's order regarding Modvat credit and penalty under Section 11AC.

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the application for rectification of mistake was directed against the Tribunal's earlier order. The Tribunal had partially allowed the appeal by reducing the penalty under Section 11AC and setting aside the penalty on the Managing Director, while upholding the lower appellate authority's order. The appellant had taken Modvat credit on short received goods, but the department argued that allowing the credit would result in double benefit as the claim amount included CVD amount. The Tribunal agreed with the department, stating that the denial of credit by the lower authorities was sustainable. However, it was noted that no further demand of CVD on the appellants remained as they reversed the credit after receiving the insurance claim amount. A mistake was found in the final order, leading to the modification reducing the penalty under Section 11AC and setting aside the penalties on the Managing Director. The appellants paying back the CVD duty amount received from the insurance company meant no further demand against the appellant company existed. The order of the Tribunal was modified accordingly to reflect these changes.