1998 (5) TMI 161 - AT - Central Excise

Summary

The appeal involved a demand of Rs. 21,760 for non-compliance with Modvat rules. The appellant, engaged in manufacturing chemicals, availed Modvat credit but failed to account for metal containers received. The Assistant Collector dropped the demand but imposed a penalty. On appeal, the Collector set aside the order, deeming the failure to make proper entries as wrong. The Tribunal, citing a previous judgment, ruled in favor of the appellant as the inputs were duly utilized in the final product. The Tribunal quashed the Collector's order and restored the Assistant Commissioner's order. Appeal allowed.