9911796707
TMI Blog1997 (11) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... up the appeal which I do with the consent of both the sides. The appeal is against the imposition of penalty of Rs. 50,000/- for alleged wrong taking of Modvat credit of Rs. 40,772/- 2. The appellant is a manufacturer of excisable goods in the manufacture of which duty paid inputs are used. The appellant, being a small scale industrial unit, was availing of Notification No. 1/93, dated 1-3-1993. In terms of the said Notification, the appellant was availing of full exemption from duty during the period 1-4-1995 to 31-5-1995 at which stage, having exceeded duty free exemption limit, appellant started paying duty availing of Modvat credit. In earlier year also, appellant was availing full exemption to begin with till reaching the exemption l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that their application under Rule 57H had not been considered with reference to the evidence filed by them regarding the availability of the inputs in stock at the time of making such an application. 3. Heard Shri A.M. Tilak, ld. DR who argued in support of the impugned order. 4. I have considered the submissions and perused the record. The finding in the impugned order-in-appeal follows the reasoning in the order-in-original to the effect that the invoice and gate pass on which Modvat credit had been taken by the appellant had already been defaced or cancelled. The Collector (Appeals) had also observed that the appellant had been taking and reversing credit again and again in respect of defaced or cancelled documents. The plea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to allow the credit against the defaced documents since it would be an indication that credit has already been taken. But, as in the present case, credit originally taken was reversed on the manufacturer opting for full exemption, the credit would be available for being taken again if the same inputs are in stock at a later stage when they are used in the manufacture of final product which are cleared on payment of duty. The problem has arisen in the present case as the appellant had resorted to this type of switching over exercise in two years. In the first year, namely in 1994 credit of duty relating to the inputs which were in stock on 1-4-1994 had been reversed and at the time of their resuming payment of duty on clearance in excess of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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