9911796707
TMI Blog1993 (7) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... dl. Collector of Central Excise, Hyderabad dated 15-11-1989 directing appellant M/s. Multipoly Films (P) Ltd. to pay duty of Rs. 80,268 and disallowing credit of countervailing duty involved on receipts dated 11-10-1988, 14-10-1988 and 19-10-1988, and a penalty of Rs. 10,000/-. Likewise on appellant M/s. J.M. Plastics Industries a duty of Rs. 70,124.85 was levied and disallowing modvat on countervailing duty amounting to Rs. 1,46,265.35 for the receipts dated 3-10-1988 and 17-10-1988 and a penalty of Rs. 10,000/- was also imposed, under the provisions of the Central Excises and Salt Act, 1944, the Act for short. 2. Shri Jogayya Sarma, the learned Counsel for the appellants at the outset submitted that the goods in question specified in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant was eligible to take Modvat credit in respect of the imported goods which had suffered Customs duty and indeed had also taken the credit and there is absolutely no legal basis or factual justification for the authorities to disallow the same and much less without giving any specific reasons thereof. The learned Counsel, therefore, submitted that the appellants having discharged the entire duty liability under the Excise Act and also had properly taken Modvat credit in respect of the countervailing duty, the impugned order directing payment of duty once over and disallowing Modvat credit taken on the countervailing duty is not sustainable either in law or on facts. The learned Counsel very fairly conceded that technically remov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the discretion of the Tribunal. So far as Modvat credit taken on the input which has suffered countervailing duty, the learned DR submitted that in the absence of records he is not able to vouch for the correctness of the submissions made by the learned Counsel from the Bar and prayed that suitable direction may be given to the adjudicating authority for due verification thereof. 4. We have carefully considered the submissions made before us. The goods in question were cleared without proper entries in the statutory register as per law and this fact is not disputed. Before the goods were released provisionally the appellants were directed to make proper debit entries for due discharge of the duty liability and according to the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. The adjudicating authority has not given any reason for disallowance of the same and we, therefore, set aside the same. It is also represented by the learned Counsel that the appellants were permitted to take Modvat credit in respect of the countervailing duty by order of the Addl. Collector dated 25-10-1988 and communicated by the Asstt. Collector on 27-10-1988 to the Supdt. of Central Excise. The appellants in conformity with such directions not only made debit entries in respect of duty on the goods in question but also took Modvat credit equivalent to the countervailing duty suffered by the goods imported and due debit entries were made in R.G. 23A Part-II Register, which was also scrutinised by the Supdt. of Central Excise who s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have been taken in respect of the inputs which were lying in stock. He has pleaded that the credit due was over Rs. 3 lakhs, and since the appellants clerk was on leave they could not take this credit of Rs. 3 lakhs. Be that as it may the fact remains that the goods had been removed without payment of duty in violation of the rule. Under SRP reliance is placed on the assessee for complying with the relevant rules through the medium of gate passes and debit entries to ensure that due duty has been paid. Any failure to comply with the requirements can lead to malpractice like duplicate transport of the goods. In view of this the goods have been rightly held to be confiscable by the learned lower authority. However, the learned lower author ..... X X X X Extracts X X X X X X X X Extracts X X X X
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