1994 (10) TMI 139

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..... penalty of Rs. 20,000/- (Rs. Twenty thousand only) under Section 173Q of the Act. 2. The facts of the case are that the assessee had taken credits amounting to the said sums on the inputs received in their factory without obtaining the original documents as prescribed under Rule 57G of the Central Excise Rules,1944 during the period 18-9-1987 to 21-11-1987. 3. The assessee took the stand that in accordance with Trade Notice No. 100/82, proforma credit should normally be allowed on production of a duty certified copy of the Gate pass. Under the circumstances on production of a certified copy of the gate pass, MODVAT Credit should be allowed on assessment. They contended that no special permission in regard thereto is required is to be t .....

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..... ector s finding that they had not executed the Bond, the ld. Advocate submitted that, it was not necessary as that portion of the Trade Notice requiring execution of Bond did not apply to the facts of their case. 6. Shri M.M. Mathur submitted that party had not executed the Bond and it was required to be executed, if they were to utilise the goods and seek the credit immediately. As there was no substantive compliance, they were not entitled to the benefit and that the impugned order has been correctly passed. There had been no explanation given for loss of Gate Pass and also they had not lodged FIR with the police and hence they cannot avail of MODVAT of their own. 7. The ld. Advocate in counter reply submitted that all goods had been .....

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..... that it does not apply to their case, as the proforma credit was not taken immediately but only after the GP was duly endorsed by the concerned officer. Therefore, the Additional Collector s denial of the benefit on this ground is not sustainable. As the assessee has duly complied with the Board s circular in question, the benefit of proforma credit availed by them cannot be denied to them. Further the demands pertain to utilisation of MODVAT Credit against GP 1, dt. 13-6-1987, 15-6-1987 and 16-6-1987. The show cause notice is dt. 17-1-1989 issued against the audit objection. There is no allegation of suppression or mis-statement. The department was fully aware of this availment of this benefit, as can be seen from the records. The RT 12 re .....

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