9911796707
TMI Blog2013 (9) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of final product has to be held as entry of duty-paid inputs and the credit cannot be disallowed. Levy of penalty - Whether the finding of facts for clandestine removal of goods recorded by adjudicating authority and the same has been upheld upto CEGAT can be overlooked in subsequent proceedings – Held that:- In the order awarding penalty, there is no such finding that the goods were brought from outside the factory, without payment of duty - It was only because of reversal of entry on duty-paid goods, the penalty was imposed. An affidavit has been filed enclosing certificate of Superintendent (Preventive), verifying that the glass shells were stored outside the factory due to shortage of space in the factory premises - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 26-4-1996. Thereafter, the assessee had taken suo motu credit of Rs. 10,63,676/- vide RG 23-A Part-II, Entry No. 589, dated 5-9-1997, on the strength of the certificate issued by Superintendent (Prev.), Central Excise, Meerut. A show cause notice dated 31-3-1998 was issued to the respondent-assessee. The Assistant Commissioner, Central Excise Division-III, Ghaziabad, vide order dated 29-9-1999, confirmed the demand of Rs. 10,63,676/-. The appeal filed by the assessee was rejected by Commissioner (Appeals), Customs Central Excise, Ghaziabad vide order dated 24-3-2003. The Customs, Excise Service Tax Appellate Tribunal, New Delhi, vide order dated 6-10-2003, allowed the appeal of the assessee, which is under challenge in this Appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... glass shells, which were received from outside the factory. The re-entry of these glass shells in the factory for use in the manufacture of final product has to be held as entry of duty-paid inputs and the credit cannot be disallowed. 6. We do not find substance in the contention of the learned counsel for the department that the goods on which the duty has been paid, if they were removed from the factory premises either for the shortage of space or that the goods were required to be polished, would not get the benefit of Modvat credit on re-entry. 7. In the order awarding penalty, there is no such finding that the goods were brought from outside the factory, without payment of duty. It was only because of reversal of entry on duty-pai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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