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TMI Blog2003 (1) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Respondent. [Order per : Archana Wadhwa, Member (J)]. Vide the impugned order Commissioner of Central Excise has confirmed the demand of duty of Rs. 42.51 crores against the appellant and has imposed identical amount of personal penalty. 2. As per facts on record appellants were issued a show cause notice dt. 24-1-2000 by the Additional Director General, DGAE (C.Ex.), Calcutta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods which represents the amount of specified duty on capital goods as revenue expenditure in their profit and loss account. In other words the quantum of Modvat credit claimed by them in respect of the various capital goods have not been claimed by them as revenue expenditure. This fact is admitted in the show cause notice. However, the notice alleges that since they have paid the central excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and is unambiguous. He further submits that though this was the ground in the show cause notice for denying them the benefit of the Modvat credit, Commissioner has not dealt with the same and has passed order against them by simply observing as if they have claimed the Modvat credit availed in respect of capital goods as revenue expenditure under the Income-tax Act. He submits that the adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hown as revenue expenditure will not amount to showing the credit as revenue expenditure. As such we are of the view that the appellants have a good prima facie case in their favour and allow the stay petition unconditionally. Dated : 21-3-2003 Sd/- (Archana Wadhwa) Member (Judicial) 6. I have carefully gone through the order drafted by my learned sister. The issue rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch directly, or after using credit of such duty for paying excise duty on the finished goods. Any other interpretation will render the amendment made to Rule 57R redundant, as in every case a manufacturer can utilize such credit for paying excise duty, and then claim the same as revenue expenditure for Income-tax purposes, and yet escape the mischief of the amended provision. In my view, prima fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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