9911796707
TMI Blog2002 (6) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Commissioner, under Adjudication Order No. 71/99, dated 26-2-1999 confirmed the demand and imposed penalty on the ground that the Modvat credit was taken by them without receipt of the inputs and only on the basis of gate passes issued by M/s. Kejriwal Enterprises and M/s. Priyanka Metals. The learned Advocate, further, submitted that the copies of the statements of Shri K.C. Kejriwal and Sunil Kejriwal were not supplied to them which tantamounts to violation of principles of natural justice; that Sanjay Aggarwal, partner of the firm retracted his statement recorded on 14-10-93 on 15-10-93 by a letter addressed to Collector, Central Excise in which he clearly mentioned that under duress they not only debited Modvat credit availed again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit; that Shri Sanjay Aggarwal, partner of the Appellant admitted having taken Modvat credit on two gate passes issued by Kejriwal Enterprises and Priyanka Metals without receiving of copper wires; that enquiry from transporters had also revealed that copper rods were never transported to the units of Kejriwal. The learned DR, further, submitted that subsequent retraction does not make the statement inadmissible. He relied upon the decision of the Supreme Court in the case of Surjeet Singh Chhabra v. UOI - 1997 (89) E.L.T. 646 (S.C.) wherein it has been held that "the confession, though retracted, is an admission and binds the petitioner". He also placed reliance on the judgment in the case of Naresh Sukhwani v. UOI, 1996 (83) E.L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods and availment of Credit without actual receipt of the goods. Modvat credit is available only on receipt of goods, on which Central Excise duty has been paid, under cover of specified duty paying documents. As receipt of goods is not there the demand is to be upheld. The demand is also not hit by time-limit as the fact of non-receipt of goods would not be reflected from extract of RG 23A. I, therefore, uphold the demand of Rs. 1,32,378.86 paise. As the Modvat credit has been taken without receipt of inputs, a penalty is imposable on the Appellants under the law. Mere fact of reversal of Credit before issue of show cause notice will not wipe out the offence of taking the credit without receipt of goods. It has been held by the Apex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
