JAYASWALS NECO LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal has been filed by the appellants against the impugned Order -in -Original dated 30.10.2001 vide which the adjudicating authority had disallowed the modvat credit and imposed penalty on the appellants as detailed therein.

(2.) THE facts are not much in dispute. The appellants availed modvat credit on various capital goods and parts as detailed in the show cause notice under Rule 57Q of the Rules. They were issued show cause notice for reversal of the modvat credit on the ground that the goods declared by them in the declarations filed under Rule 57T from time to time could not be treated as capital goods under Rule 57Q. They were served with as many as 16 show cause notices for different periods starting from December 96 up to August 97 during which modvat credit of various amounts as detailed in the impugned order itself was availed by them, to show cause as to why the modvat credit availed by them should not be recovered from them. The appellants, however, contested those notices by alleging that the modvat credit had been rightly claimed by them on the capital goods under Rule 57Q. However, they reversed the modvat credit on certain items as detailed in para 4.1 of the impugned order. Against capital goods, they reversed credit of Rs. 39,75,665 while against inputs of Rs. 1,12,913. These amount's were covered by 5 show cause notices. After getting the reply from the appellants, the adjudicating authority passed the impugned order vide which the authority disallowed modvat credit of certain amounts and confirmed reversal of the credit amounts as made by the appellants on receipt of the show causes notices.

(3.) WE have heard both the sides.