GUJARAT RAFFIA INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) Examined the records and heard both the sides.

(2.) Both the original and first appellate authorities denied Modvat credit amounting to Rs. 3,32,897.55 to the appellants and imposed on them a penalty of equal amount. Hence this appeal.

(3.) The above Modvat credit had been taken on the countervailing duty (CVD) paid on three consignments of inputs which the appellants had procured in a high sea sale transaction. The said goods were purchased by the appellants from M/s Hemant Plastics and Chemicals Ltd. and M/s Supreme Industries Ltd. The credit of CV duty was taken by the appellants on the strength of three triplicate Bills of Entry, two of them standing in the name of M/s Supreme Industries and the other in the name of Hemant Plastics Ltd.