9911796707
TMI Blog2002 (4) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Respondent. [Order per : G.R. Sharma, Member (T)]. This is an appeal against disallowance of Modvat credit and imposition of penalty. 2. The facts of the case briefly stated are that the appellants are engaged in the manufacture of EPS Moulded products for packing, EPS Sheet, EPS Block and EPS parts of Head Gear. Scrutiny of the Modvat documents revealed that the appellants had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , learned Consultant submits that it was a mistake on the part of the clerk who was maintaining the documents and excise records. He submits that the clerk to create mischief changed the dates on the invoices. He submits that there was no dispute about receipt of the goods; that the duty paid character of the goods and use of inputs in the manufacture of the finished product is not disputed. He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance has been taken on the finished goods when there was no sufficient balance to pay the duty amount. He submits that by manipulating invoices in respect of the inputs the appellants took credit on the date when the goods have not been received in the factory. He submits that law is very clear in this respect which says that no credit shall be taken unless the goods are received in the factory. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of final product and the inputs were received in the factory whereas we consider the disallowance of Modvat credit was too harsh we hold that for manipulation of records penalty is imposable. Looking to the facts of the case we hold that disallowance of Modvat is too harsh and therefore, the order disallowing Modvat credit is set aside. 7. In regard to penalty also we find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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