9911796707
TMI Blog1999 (7) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Central Excise Tariff Act, 1985 and availed Modvat credit under Rule 57Q on the capital goods. Show cause notice was issued on 30-11-1994 to show cause as to, why the Modvat credit amount of Rs. 6,15,582/- should not be disallowed and recovered under Rule 57-I/57-U of the Central Excise Rules. It was replied on 12-12-1994 denying the allegations by the appellant. After hearing the party, the Additional Commissioner Aurangabad by his order dated 20-3-1997 disallowed the Modvat credit of Rs. 168,361/- in the case of 4 items at Serial No. 3, 7, 9 & 10 of the show cause notice with the direction to pay the same. In the appeal preferred by the appellant the Commissioner (Appeals) Central Excise and Customs Pune under the impugned order ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23 Part I Entry of Rs. 94,947/- was not touched and still balance is there. The revenue is not affected. As per 1999 (30) R.L.T. 337 the credit is available on profile projector and lathe machine. Regarding Sr. No. 3 in the show cause notice the appellant has admitted the case of the department and debited Rs. 50/-. The ld. JDR has submitted that regarding Sr. No. 10 early entry, the Assistant Commissioner is not informed, and no catalogue is produced to show the bringing up the change by the use of the capital goods involved in this case. 2. The point for consideration is whether there are sufficient grounds to allow the appeal. My finding thereon is in the affirmative. 3. The appellant has produced Synopsis of Important Dates/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods in the factory and eligibility of the credit thereon. It is human error to make an entry of the money credit account in the R.G. 23C Part II on earlier date than the date of entry in the quantity credit in R.G. 23C Part-I. There is no allegation that the appellant have availed money credit earlier to quantity credit and overdrawn for the clearing goods with a view to defraud the Government. When the capital goods were received on 23-10-1994 there was an opening balance of Rs. 1,27,660/- out of which on 1,23,260/- was utilised for the clearance of the final product and still there was a closing balance of Rs. 4,400/-. Even without taking credit of Rs. 94,947/- before making entry in the Quantity Register, Government revenue was not at al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment. The circumstances, in which the entries are made as pointed out by the appellant, and the financial position in the R.G. 23C Part I and II registers shows that the entry was only an human error, and there was no overdrawal of the credit, and when the goods were received there was still a closing balance. So under these circumstances the contention of the appellant is fit to be accepted. The reason given by the Additional Commissioner for denying the credit on the project profile and lathe machine is very vague. The appellant has satisfied as to how checking of the end radius profile by the profile projector goes to control the process of production. The appellant has explained that without the use of profile projector and lathe ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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