2011 (3) TMI 1101

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..... e consignee, they rejected the same - Held that:- Whether rewarehousing certificates establishing the fact of receipt of goods by the consignee is available or not, is required to be examined - Further, the fact that whether such rejected goods were actually received back by the appellants in their factory is also required to be verified and to be examined by scrutiny of the modvat account maintai .....

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..... ellants have cleared their final products against CT-3 certificate to another 100% EOU, without payment of duty. As per the appellants, the said goods were re-warehoused at the consignee s end. However, as the same were not found fit by the consignee, they rejected the same. Accordingly, the appellants issued credit notes to the consignee. 3. As a result of audit, show cause notice was issued .....

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..... utory books. They also contended that as no duty was paid by them at the time of removal, the question of taking modvat credit does not arise at all. 5. The above contention of the appellants was not accepted by the original adjudicating authority, who going by the fact of admission on the part of appellant s representative, confirmed the demand and also imposed penalty. On an appeal against t .....

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..... ehoused is not correct. They have produced the rewarehousing certificate before the authorities and as such, the goods having been rewarehoused, it was the duty of consignee to clear the same on payment of duty, if at all. No duty liability can rest upon them. 7. Apart from the above, learned advocate has submitted that they have not taken the modvat credit in respect of the said goods at all. .....

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..... rified and to be examined by scrutiny of the modvat account maintained by the appellants. For the said purposes, I set-aside the impugned order and remand the matter to original adjudicating authority for fresh decision, after verifying all the above factual aspects. Stay petition as also appeal get disposed off in above manner. (Dictated and pronounced in the Court) - - TaxTMI - TMITax - .....

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