SUN VACCUM FORMERS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) APPELLANTS filed this appeal against the adjudication order passed by the Commissioner of Central Excise. In the impugned order the Commissioner of Central Excise dis -allowed the MODVAT credit of Rs. 25,26,192/ - in respect of capital goods and imposed the penalty of equal amount on the appellants.

(2.) BRIEF facts of the case are that appellants are engaged in the manufacture of parts of Motor vehicles and were availing the benefit of MODVAT credit in respect of the inputs as well as capital goods. During the period from September, 1995 to March, 1998 the appellants received certain capital goods and took MODVAT credit in respect of the duty paid on these capital goods. During the period December, 1997 to May, 1998, appellants shifted certain capital goods from their factory premises to another factory premises of M/s. Sun Steering Wheels Ltd. The appellants reversed the credit in their RG -23 C Part -II in respect of the capital goods shifted to the other factory. Thereafter, on 29.3.1999, the appellants had again taken the MODVAT credit which were earlier reversed without receiving the capital goods in their factory. A show cause notice was issued to the appellants for denial of the above mentioned credit and for imposition of penalty. After affording an opportunity for hearing to the appellants, Commissioner of Central Excise passed the impugned order.

(3.) HEARD both sides.