9911796707
TMI Blog2003 (8) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... of the C.E. Rules, 1944 read with Section 11D of the C.E. Act, 1944 and imposing penalty of Rs. 10,000/- under Rule 173Q(1)(bbb) for non-observance of procedure and passing irregular Modvat credit. 2. The facts of the case, in brief, are that the appellants, being a registered dealer purchased Polyester Twisted Dyed Yarn from M/s. Regal Criptex Ltd., Silvasa, entered the credit in their RG-23D register and passed on the credit to their customer. On scrutiny of the mother invoices, it was also written thereon as Being sent for dying to M/s. Criplon Yarns, Vapi for dying, on behalf of the buyer . It has been alleged that dealers have no provision to get their goods processed by job workers and dyeing of yarn amounts to manufacture which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voices in the invoice issued by them for payment of duty on processing. Invoice-wise quantity of yarn and payment of duty are tabled below for the sake of brevity :- Regal s Invoice No. and Date Qty. of Yarn in Kgs. Duty (Rs.) Crimplon s Invoice No. and Date Qty. of Yarn in Kgs. Duty on Processing (Rs.) Basic (6/- per Kg.) AED 15% on Basic 732-24-2-98 700.300 15,620 2,343 282-9-3-98 2276.920 13,661.50 2,049.20 734-25-2-98 787.220 17,559 2,634 746-03-3-98 789.400 17,608 2,641 706-17-2-98 720.810 16,078 2,412 277-6-3-98 4028.040 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when minor procedural defects could be cured subsequently substantial benefit of Modvat is not deniable. They stressed that the allegation that there is no provision in the Central Excise Rules, 1944 that a dealer cannot send the intermediate goods for job work is baseless, because proper Central Excise duty was paid on the duty paid polyester yarns consignment for dyeing the said goods by M/s. Crimplon before sending the goods to them. Therefore the question of following the procedure of processing the inputs by job work under Rule 57F(4) read with Notification No. 214/86, dated 25-3-86 does not arise in this case. 4. In the impugned order the Asstt. Commr. has observed that there is no provisions in Central Excise Law for the dealer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve the fully processed yarn from either of the consignors, then taking credit and passing on the same would have been perfect in all respects. There has been no question about the duty-paid character of the goods except that the lower authority has ignored the fact of payment of duty on dying of the yarn which has been done as per the provisions of the Notification No. 4/97-C.E., dated 1-3-97 as amended by Notification No. 19/97-C.E., dated 11-4-97. Through invoices No. 282, dated 9-3-98 and 277, dated 6-3-98, M/s. Crimplon has paid the duty. Hence except minor procedural lapse that the goods have come via a processor, I do not find any factor that has emerged which would be responsible for denying the credit. Further I find what that the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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