1999 (8) TMI 357

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..... basis of invoices covering goods procured from market sources. At a later date when these invoices were checked it appeared that the thickness of the steel sheets was not shown in the invoices when they were received from the dealers, but that the assessees had later incorporated these details in the challans. The Jurisdictional officers were of the opinion that this amounted to tampering and manipulation. The assessees also voluntarily reversed credit taken to the extent of Rs. 2,95,289/-. The statement of Shri Chaphekar Director of the assessee unit was recorded. A show cause notice dated 29-11-1994 was issued seeking to deny credit on such invoices taken during the period 24-9-1988 to 17-4-1993. Before the Collector, the assessees claim .....

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..... coverage of the Central Excise law. The sellers included dealers and scrap merchants, who did not came from the organised sector. Therefore even whereas in the present case, the order permitted goods of a certain description to be received, they did not stipulate that the very description which appeared in the order should be reproduced in the invoices. In this situation there could be no objection to an assessee taking Modvat credit merely because the description of goods in the invoice was not in the same wording as occurring in the order issued under this proviso. In other words the departmental officers could not draw inference that the goods were of a thickness in excess of the permitted thickness, just because the invoice was silent .....

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..... ecounting an age old practice in their factory which was not designed nor was intended to take wrongful advantage of the Modvat scheme. Entries on the invoices subsequent to receipt on the goods were not being done in anticipation of the day on which the excise authorities would raise an objection. These documents were not manipulated documents to avoid detection. Therefore the accent placed upon these subsequent additions is entirely unfounded. 9. Shri Chaphekar gives the reason for the voluntary payment as follows : It is true that the Central Excise officers had raised an objection that the Modvat credit i.e. not available on the challans/duty paying documents where the full particulars of the material are not shown. We were convinc .....

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