9911796707
TMI Blog2002 (2) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ts manufacture communication equipments and parts thereof falling under Chapter sub-heading Nos. 8517.00 and 8529.00. They are also availing the facility of the Modvat credit on the inputs used in the manufacture of their final products. On the visit of the Central Excise Officers to their unit in June, 1997, it was noticed that 8199 meter cables (inputs) on which the Modvat credit of Rs. 13,22,04 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also directed the recovery of the interest of Rs. 5,75,072/- under Rule 57-I(5) of the Central Excise Rules, 1944. 2. The party filed an appeal but the same is rejected by the order dated 21-8-2001 of the Commissioner (Appeals), Chandigarh. 3. This appeal is against the impugned order of the Commissioner (Appeals). We have heard Shri A.R. Madhav Rao, ld. Advocate, for the appellants and S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no violation of any of the provisions of the Modvat rules and therefore imposition of the penalty equal to the amount of the credit levying interest under the provision of Rule 57-I(5) of the Central Excise Rules, 1944 is not valid. We have considered these submissions. As already stated above, the appellants are not contesting the recovery of the Modvat credit amount to Rs. 13,22,041/- in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be imposed on the appellants. The interest is recoverable under Rule 57-I(5) if the credit of duty on the inputs has been taken for the same reasons. Therefore, the interest provisions as provided under this sub-rule are not applicable to the facts of the present case. We also find no rebuttal in the order of the original authority to the submissions of the appellants that at all times they main ..... X X X X Extracts X X X X X X X X Extracts X X X X
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