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TMI Blog2005 (9) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... - against M/s. Sarjak Electricals Pvt. Ltd., by denying them the benefit of Modvat credit of duty. In addition, personal penalty of Rs. 5 lakhs and Rs. 3.50 lakhs has been imposed upon the said appellants under the provisions of Rule 173Q. Penalty of Rs. 2 lakhs and Rs. 6.50 lakhs has been imposed upon Shree Ram Engineers and M/s. Megha Power Equipments, along with imposition of personal penalty of Rs. 2 lakhs on Shri R.N. Sanghvi under the provisions of Rule 209A of Central Excise Rules, 1944. 2. As per the facts on record, proceedings were initiated against M/s. Apex Electricals Pvt. Ltd., and M/s. Sarjak Electricals Pvt. Ltd., on the ground that they were sending raw materials to eight other units on job work basis and receiving the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said Rule 56(b) allows higher notional credit, where the goods have been received from small scale manufacturer on payment of concessional rate of duty. Inasmuch as the job workers had cleared the goods on payment of duty @ 5% ad velorem, the recipient of the goods i.e. Apex Electricals Pvt. Ltd., and M/s. Sarjak Electricals Pvt. Ltd., availed higher notional credit of 10% of duty in terms of the said Rule. 4. We have heard Shri Mayur Shroff, ld. Advocate appearing for the appellants and Shri R.B. Pardeshi, ld. DR appearing for the revenue. 5. It has been strongly contended before us that the show cause notice was issued on the alleged ground that the said job workers are non-existence unit. However, while adjudicating the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing cores. Inasmuch as the cores were being cleared at concessional rate of duty on account of said job workers being a small scale unit, the manufacturers i.e. M/s. Apex Electricals Pvt. Ltd., and M/s. Sarjak Electricals Pvt. Ltd., were entitled to higher notional credit. 7. As regards the goods received from other job workers M/s. Megha Power Equipments, it is seen that the said unit was manufacturing transformer core and transformer tank as also transformer coils. The Commissioner has observed that during the relevant period there was consumption of only 17 units of electricity power, which is not sufficient to manufacture tank. Shri Shroff, ld. Advocate has drawn our attention to the finding of the Commissioner in respect of othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by M/s. Megha Power Equipments. Accordingly, we extend the benefit of doubt to the said appellants and hold that the goods were manufactured by them, in which case the main manufacturers would be entitled to the benefit of the higher notional credit. 9. Ld. Advocate has conceded to reverse back the higher notional credit availed in respect of M.S. Tank manufactured by M/s. Megha Power Equipments and has not contested the finding of the Commissioner that consumption of 17 units of power was not sufficient to manufacture the said tanks. As such, we disallow the higher notional credit availed on the tank received from M/s. Megha Power Equipments, but agree with the appellant s contention that actual duty paid by the said job workers woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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