2004 (1) TMI 573

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..... ts filed this appeal against the Order-in-Appeal whereby the modvat credit of Rs. 3,52,494/- on the ground that there was shortage of duty paid inputs. The goods found in excess were also confiscated and allowed to be redeemed on payment of redemption fine of Rs. 35,000/-. The penalty of Rs. 35,000/- was also imposed on the appellants. 2. The appellants are not contesting the confiscation of the .....

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..... not found in the factory and the adjudicating authority denied the credit and imposed the penalty. 5. The contention of the appellants is that PU foam was available in the open space near the manufacturing hall. The appellants produced a copy of plan which was submitted along with the application for registration which shows some open space near to the manufacturing hall. The contention of the .....

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..... ioned that these goods are stored in the factory near to the manufacturing hall. There is no finding that the goods were not found there. The appellants mentioned that it was their practice that they were keeping PU foam in the open space, as in the manufacturing hall, the machines being run by gas flame when the process of laminating being undertaken, therefore, PU foam is stored in the open spac .....

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