R.D. ELECTRONICS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) Appellants filed these appeals against the common order in appeal passed by the Commissioner (Appeals).

(2.) Brief facts of the case are that appellants are engaged in the manufacture of Capacitors and were availing the benefit of MODVAT credit.

(3.) The Appellants were availing the benefit of Notification No. 84/94 -CE dated 11.4.94 which provides exemption from whole of the duty of excise to the Small Scale manufacturer who are sending the raw -material or semi -finished goods on job work basis to a place outside the factory. Show cause notices were issued to the appellants denying the benefit of MODVAT credit on the ground that the raw material was sent directly to the job workers without receiving in the factory. The adjudicating authority confirmed the demands and imposed the penalty. Appellants filed appeals and the Commissioner (Appeals) dismissed the appeal on the ground that the appellants had not followed the procedure as there is no provisions in the Central Excise to allow direct movement of goods from the supplier of inputs to the job workers.