9911796707
TMI Blog2006 (5) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... ase by CEGAT, Chennai Bench. The issue involved is availment of irregular and excess Modvat credit. The appellants are manufactures of Transformers, which are supplied to Andhra Pradesh State Electricity Board (APSEB). The Preventive Officers of the Central Excise Department intercepted a Truck on 25-07-1999 carrying 100 KVA Transformer on which no duty was paid. This incident lead to further investigations. The appellant has another unit, which services Transformers. The case of the Revenue is that the appellant availed Modvat credit and diverted a part of the input to the Services unit. According to the Revenue the Services unit has utilised more inputs than what has been shown in their records. Hence, the Revenue has come to the conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 51,26,869/- which is equivalent to the amount of Modvat credit irregularly availed; (v) Interest as applicable on the Modvat credit misused i.e. Rs. 55,44,417/- in terms of Rule 571(5); (vi) Penalty of Rs. 7,440/- in terms of Section 11AC; (vii) Interest on Rs. 7,440/- under Section 11AB; (viii) Penalty of Rs. 7,00,000/- under Rule 173Q (ix) Personal penalty of Rs. 10,000/- on Shri M.R. Srinivasa Moorthy, Materials Manager and Central Excise incharge under Rule 209A of CE Rules. 2. Shri V.S.V. Subrahmanyam, the learned Chartered Accountant, appeared for the appellants and Shri K. Sambi Reedy, the learned JDR for the Revenue. 3. The learned Chartered Accountant urged the following submissions :- (i) The adjudicating authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural justice." In the remand order, it can be seen that the CEGAT had given a specific direction to take into consideration the certificate given by the Chartered Engineer. The Chartered Engineer's affidavit is reproduced below: Affidavit I, J. Venkata Swamy, S/o. Sri J. Nagappa, R/o. Hyderabad, do hereby solemnly affirm and state as under: - 1 THAT, I am an FIE i.e. A Fellow of Indian Institute of Engineers; 2 THAT, My bio-data is enclosed herewith and in that capacity the affidavit is deposed; 3 THAT, I have gone through several purchase orders (for the periods falling between 1995 to 1999) of M/s. APSEB (M/s. A.P. State Electricity Board) for the purchase of Transformers - oil immersed naturally cooled 3 Phase out door type Transfo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... despatch of goods to the customers; 8 THAT entries C324 & C325 of SION of the EXIM Policy are the applicable entries for the products mentioned at point number (3) above; 9 THAT from all the foregoing analysis or coverage I am of the opinion that the input consumption norms provided by the Technical Chief of BTPL is well acceptable and are perfectly in order and bears testimony with the governmental Authoritative sources cited above. 10 THAT I depose as above in or to my free will and in the capacity as a Chartered Engineer and sign as under:- Place: Hyderabad Date: 1-6-2001 DEPONENT The affidavit has been given by the Chartered Engineer after going through the several purchase orders of APSEB. According to the APSEB, the SION as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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