9911796707
TMI Blog1994 (5) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... als, and for want of time, the judgement could not be dictated and it was announced in the open Court that detailed order would follow. 3. M/s. Indo Tech Electric Company (ITEC) are manufacturers of electric transformers etc. and mainly supply goods to Electricity Boards, Railways and other Industrial undertakings. Appellants M/s. Bhagavathy are manufactureres of transformer radiators/transformer tanks/transformer frame parts and are holding licence under the Act. The authorities on the basis of intelligence that M/s. ITEC were indulging in wrong availment of MODVAT concession by creating front Companies visited the factories of both the appellants on 12-2-1988 and recovered certain evidence and the proceedings were instituted against the appellants on the ground that M/s. Bhagavathy is a fictitious Company floated by the other appellant for the purpose of availing erroneous MODVAT Credit and that appellant M/s. Bhagavathy did not manufacture any Radiators out of parts received allegedly from other places but instead received only completely manufactured radiators which were received from M/s. Pondicherry Forging and Engineering Works and M/s. Pushpak Electric Corporation, Bangal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that his Company supplied only radiator parts to M/s.Bhagavathy and a number of documents were produced before the authorities in proof of the fact that radiator parts supplied by the suppliers were defective and a number of them not conforming to the standard prescribed by the appellants and even though these documents formed part of the documents, they have not been considered in the impugned order nor referred to therein. The important fact is that the appellants M/s. Bhagavathy received radiator parts and manufactured radiators and supplied the same to various customers and this fact has been lost sight of by the authorities. Apart from Indo Tech, their various customers are Radio and Electricals Ltd. Vigneswara Electricals Pvt. Ltd. and others. It does not stand to reason as to why M/s. Bhagavathy should receive completely manufactured radiators and despatch the same to various outstation customers. The learned Counsel also explained the reason and necessity for appellants M/s. Bhagavathy to manufacture radiators out of the parts received, as full-fledged radiators received from various outstations always gave rise to leakage and the Electricity Department complained about ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ators in the name of radiator parts. He has clearly admitted in cross- examination that they have not manufactured radiators after coming under the MODVAT Scheme as they have filed declaration only for radiator parts. He has only stated that as per the MODVAT declaration filed under Rule 57G of the MODVAT Rules, 1944, the final product on which MODVAT Credit was availed was parts of radiators and the input is CR sheets . During cross-examination, Shri Sankaranarayanan was also shown a Photostat copy of the classification list and was also shown Invoice No. 133 dated 17-1-1987 on the basis of which the department initially commenced enquiries. He has stated that they had supplied only radiator parts and not radiators. The MODVAT declaration filed by M/s. Pondicherry Forgings has been accepted by the Department and MODVAT Credit has been allowed and the Department has not held that the MODVAT declaration filed by M/s. Pondicherry Forgings was incorrect or Wrong. He has also produced copy of the order dated 2.3.87 placed by M/s. Bhagavathy for radiator parts only and not for radiators. The department should have verified the invoice and bills at M/s. Pondicherry Forgings. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 138/30-1-1987 500x3x75 700x4x75 700x3x75 50 25 5 138/30-1-1987 71/31-1-1987 8. 139/31-1-1987 500x3x75 50 139/31-1-1987 73/2-2-1987 1. 58/3-8-1987 500x3x75 100 58/3-8-1987 77/4-8-1987 2. 59/7-8-1987 500x2x75 500x3x75 800x5x75 800x6x75 1000x10x75 40 50 67 26 6 59/7-8-1987 80/8-8-1987 3. 63/17-8-87 500x3x75 700x5x75 38 35 63/17-8-1987 85/18-8-1987 4. 64/21-8-1987 600x5x75 700x5x50 34 50 64/21-8-87 86/22-8-87 Finished product Entry in RG-I Removal G.P. No. Date Name Address of the consig-nee Completed Radiators sizes Qty. In Nos. REMARKS 7 8 9 10 11 2 5-1-1987 49/5-1-1987 Radio Elecls. Ltd. 500x3x75 120 10-1-1987 50/10-1-1987 Indo Tech Electric Co. 500x3x75 140 31-1-1987 20-1-1987 23-1-1987 56/31-1-1987 51/20-1-1987 52/23-1-1987 -do- - do- -do- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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