9911796707
TMI Blog1994 (7) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... uts under their internal challans without following the prescribed procedure and without reversing the credit availed on these inputs. The General Manager of the unit had admitted on 14-3-1990 that the part consignment was transferred to their second unit at Gurgaon on different dates against internal challans and no credit was reversed or adjusted in their RG-23A Pt. II at Mayapuri Unit. The consultant at the time of personal hearing also admitted that they had stopped production of Compasses in their Mayapuri factory about two years ago. He could not produce any correspondence to show that they had informed the jurisdictional Central Excise office about the stoppage of production of compasses in Mayapuri Factory. Since the party had sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g them as to why penalty should not be imposed on them. 3. When the case was taken up though there was a request for considering the case on merits, Sh. J.C. Khanna, Chief Executive of the appellant company appeared and requested to decide the case on merits. Revenue was represented by Shri B. D. Bhagat, the ld. JDR, In the grounds of appeal the appellant admitted that 42.500 kgs of Silicon Fluid was transferred by the appellant from its Mayapuri Unit to its Gurgaon Unit; that this quantity was accounted for by the Gurgaon Unit of the appellant. However, Modvat credit of duty paid on the said quantity of Silicon Fluid was not taken by the Gurgaon Unit as no duty paying documents were issued by the Mayapuri Unit in respect of the said quan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r knew otherwise is required to be established. It has therefore, been contended that there was no case for extending the period of demand. It has also been contended that the demand of duty under the proviso to Section 11A(I) must be issued by the Collector and adjudicated by the Collector under Section 11A(2); that in the instant case a show cause notice has been issued by the Addl. Collector and the adjudication has also been done by the Addl. Collector and therefore, the order lacks jurisdiction. In the prayer there is a request for setting aside the demand for duty and penalty. 4. Heard the submissions of ld. JDR, perused the grounds of appeal and other evidence on record and considered it. On careful consideration of the evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gurgaon Unit no Modvat credit was taken by Gurgaon Unit. The question of Gurgaon Unit taking Modvat credit did not arise inasmuch as no duty paying documents accompanied the goods. Further, there is no verification of this statement that declaration of these goods as inputs was filed by the Gurgaon Unit to the department and that Gurgaon Unit was entitled to take such credit. Without going into this issue which is not before me for determination, I hold that, the contention regarding no loss of revenue to the department cannot be accepted at this stage 6. In regard to the lack of jurisdiction in issuing the show cause notice or adjudicating the case by Addl. Collector, I find that for purpose of adjudication and issue of show cause notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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