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TMI Blog1994 (4) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 shows leaves for springs (untempered and without shot peening) as input and springs and spring leaves as output. 3. The department however has made out this case against them on the assumption that Spring leaves could not be manufactured out of spring leaves. According to the department that what has been shown as input was itself a final product and therefore no modvat could be taken with reference to it. 4. It was however their contention that they used to receive semifinished springs in the sense that they were untempered and without shot peening on the gate pass and to subject these inputs to further processes of tempering, peening etc. and this clear the product for sale after availing modvat credit. This would be evident from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 pieces and it has been explained that out of these 20 had been removed for repainting and five were the production of the same day that is day of checking and therefore were yet to be accounted for. And furthermore the Collector has himself allowed them to be cleared on payment of duty. 10. Learned D.R. drew attention to the Order-in-Original and in particular to page 11 thereof. He reiterated the department s view and emphasized that the department has made out this case on the basis of the statement of Ashwani Kumar and observations of the visiting team with reference to which the Collector has recorded his findings. He further emphasized that although the declaration had been admittedly filed it was in department s view not a proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f five pieces the appellants have given plausible explanation which has not been shown wrong but in respect of 20 pieces they have not been able to show any evidence by way of any remark in RG 1 and hence we confirm the demand of duty on the 20 pieces found short . In respect of five spring leaves the Collector has already allowed them to be entered in RG 1. The confiscation of 2613 pieces is set aside and consequentially the redemption fine. Since modvat credit had been rightly taken hence duty demanded with reference to the same is set aside. Looking to the totality and facts circumstances a penalty of Rs. 25,000/- was not justified. It is therefore set aside. Therefore in respect of minor matter of 20 pieces we consider that a caution ..... X X X X Extracts X X X X X X X X Extracts X X X X
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