1998 (2) TMI 191

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..... This is an application for waiver of duty demand of Rs. 2,45,243/- and a penalty of Rs. 1 lakh. 2. The applicants are engaged in the manufacture of arc welding electrodes and working under the Modvat scheme. On 7-6-1991 the officers of Central Excise visited the factory of the appellant and inquired about the import of Nickel Powder which was used as inputs and the appellants were taking the .....

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..... d is based on presumption and assumption and is not based on cogent evidence. He further submitted that adjudicating authority admitted that two drums of Nickel Powder were found in the production section. These drums were also seized alongwith the 24 drums and later on after verification these drums were released to the applicants. He submits that this shows that Nickel Powder is being used for t .....

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..... es the material which were of not any use. He also admitted that similar useless material was received by them in the production section which was lying in these 24 drums and as per arrangement such raw material is kept in production section for sometime and subsequently sent to scrap yard. He also explained that this arrangement is being done for the purpose or availment of Modvat credit on the i .....

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