9911796707
TMI Blog2000 (7) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... ng normal practice in manufacturing industry and for such other relief deemed fit. 1. Facts of the case in brief are that appellant manufactures Switch Mode Power Supply falling under chapter heading 85 of Tariff Act, 1985, under Registration No. CEX/RII/KIII/D 1/33/92 (ECC No. 0210020456) and avail Modvat facility under Rule 57A of Central Excise Rules and filed declaration of raw materials under Rule 57G on intelligence gathered that appellant is adopting some fraudulent malpractices in that regard, and investigations were carried out by preventive staff of Div. K III. The statement of Purchase Manager Shri Raju Kishandas Bhatia, under section 14 of Central Excise Act, it disclosed that between October, 1989 to November, 1991, appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention of both sides, and argued that during 1989- 91 there was no Excise Control. Modvat could be taken on gate passes or subsidiary gate passes, or certificate issued by Superintendent. Mahalaxmi Aluminium Centre was the main supplier of Aluminium sheets, Profile flats and Sections. When it was not available, stockists (small shop) used to send them under subsidiary Gate Passes. Payment was made to supplier. Receipt of goods from stockists (small shop) of supplier was procedurally correct. Main supplier has not sent the inputs, as contended by department. If he had sent, GP used to be accompanied. Regarding time-bar aspect, statement recorded is mis-interpreted. Cross-examination was not given, though asked for, 1999 (108) E.L.T. 285 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression for purpose of Modvat credit". Extended period not invokable. It is considered in the below paras, on facts of both cases, and general principle laid down and discussed for applicability or not. 5. Let me first consider the question of limitation period involved is October, 1989 to November, 1991. Show cause notice is dated 3-2-94. As per para 10 of it, reply should be filed within 30 days from the date of receipt of the same. Reply is filed on 5-4-94. As per para of show cause notice extended period is invoked on the ground that the fact of different sources from where subsidiary gate passes were applied and the source of receipt of goods were received along with delivery challan/Invoice" was suppressed by the appellant. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re/elicit the benefit of Modvat"- on this count proviso to Rule 57(1) read with provision of S. 11A(1) of Customs Act is rightly invoked. In response to that, appeal memorandum ground II in Page 11 states that the case of secret information by department is patently false made without proper application of mind. Enquiry started on 26-11-93 when statement of Shri R.K. Bhatia was recorded. Show cause notice is for October, 1989 to November, 1991. Secret information would pertains to 1993 i.e. just prior to date of statement. Falsity of information is exposed by covering October, 1989 to November 1993 in show cause notice. Similar enquiries were made with numerous other manufacturers and show cause notice and demand on the basis are issued. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppressed. As per impugned order appellant was aware that during relevant time proper duty paying documents was invoice, still appellant persisted claiming Modvat credit on subsidiary gate passes. So there is no consistency and clear case of the department in that regard. There is no reason as to how 1989-91 dealings of the appellant got the attention of department only in November, 1993, when investigation was started by recording statement under section 14 of Excise Act which is the only basis for the case. As contended by the appellant, if at all secret information was received it must pertain to immediate past period, not 2 to 4 years back. The probability of case is in favour of appellant. The demand is time-barred. On that ground, impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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