9911796707
TMI Blog2007 (11) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... was found computers turned out to be faulty, and returned to the supplier as 9-10-1998 without preparing any duty paying documents. On a query from the Superintendent Office on 8th January 1999, the credit so availed was reversed by the appellant on 12th January 1999. Show cause notice was issued to the appellant for appropriation of the amount debited by him and for imposition of penalty and recovery of interest. In the first round of litigation matter travelled up to the Tribunal and Tribunal remanded the matter back to the adjudicating authority to re-consider the issue afresh, specifically with reference to reducing the penalty and interest. The adjudicating authority on the contrary enhanced the penalty and also sought interest from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. with intent to evade payment of duty. It is his submission that, but for being pointed out by the officers, this error would not have been brought to notice and the appellant would have continued to use the credit. It is also his submission that the provisions of Rule 57U will not be applicable. It is the submission that once it has been considered that the appellant has availed the credit with an intent to evade payment of duty, the provisions of Section 11AB gets automatically attracted. 5. Considered the submissions made by both sides and perused the records. It is undisputed that the Modvat credit availed by the appellant on the goods would fall under the head "capital goods". It is very clear that provisions of Rule 57Q to Rule 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit has been taken in respect of inputs. As regards the imposition of penalty under Rule 57U(6), I find that the appellants have correctly followed the provisions of Rule 57U(4) (5). I may read the rules :- Rule 57U(4) : If any capital goods in respect of which credit has been taken are not fully accounted for as having been disposed off in the manner specified in this section, the manufacturer shall, upon a written demand being made by the Assistant Commissioner of Central Excise, pay the duty leviable on such capital goods within three months of the receipt of the notice of demand. Rule 57U(5) : Where a manufacturer or an assessee fails to pay the amount determined under sub-rule (3) or under sub-rule (4), as the case may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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