9911796707
TMI Blog2007 (5) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... ri R.S. Dinkar, Advocate, for the Appellant. S/Shri K.J. Sanchis, JDR, for the Respondent. [Order]. - These appeals are directed against order-in-appeal dt. 22-5-06. 2. The appellant company is in appeal against the order for denial of Modvat credit to them, while the Revenue is in appeal against setting aside the penalty on the appellant by Commissioner (Appeals). 3. The relevant facts that arise for consideration are that appellant company was availing Modvat credit on the duty paying documents received by them from two registered dealers. The allegations in the show cause notice are that the appellant company availed Modvat credit based only on the documents and did not receive any input as indicated in the said duty payi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paying documents indicated the credit taken by the dealer was against the invoices issued by one M/s. New Siddhi Vinayak Re-Rolling Mills, the dealing between registered dealer and the said M/s. New Siddhi Vinayak Re-Rolling Mills could not be considered as relevant for denying the Modvat credit to the current appellant. The current appellant had, in fact, purchased M.S. scrap from several registered dealers and have paid money to them for that, it is also on record that after consuming the scrap, they had manufactured finished goods and cleared the same on payment of duty. It is settled law that when the inputs are received and consumed in the factory premises, there cannot be any denial of Modvat/Cenvat credit to the appellant. In this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that Prerna Metal Inds. had bought material from Delhi Aluminium Corporation which was substantial in nature. Once the Revenue is not disputing the receipt of goods under the cover of invoices by the appellants which contained duty paying particulars the Modvat credit cannot be denied to the appellants. As far as the appellants are concerned they have purchased the goods which are dutiable on the strength of the invoices carrying duty payment particulars. Moreover the Revenue has confirmed the demand of duty against Prerna Metal Inds. in respect of goods removed by them by utilizing wrongly availed Modvat credit. We also observe that Rule 57-I of the Central Excise Rules, 1944 at the time when the show cause notice was issued, provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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