M/S. ACMECHEM LTD. AND ORS. Vs. CCE

JUDGEMENT

(1.) WHEN these miscellaneous applications are filed by the appellants for bringing on record the additional grounds which were not raised earlier while filing the appeals. Heard both sides on the miscellaneous applications and perused the records.

(2.) BASICALLY , these miscellaneous applications seeks to bring additional grounds of appeal which would indicate that the provisions of Rule 57I of the Central Excise Rules, 1944 were substituted by new Rules, w.e.f. 1.4.2000, but did not save the earlier Rule 57I. It is seen that the effect of such substitution would be whether the demand can be raised of the in -eligible MODVAT Credit prior to 01.04.2000. On a specific query the Bench, ld. Counsel submits that this point was not taken before the adjudicating authority when the adjudication was done. Since this is a question which needs to be addressed in the entire proceedings, we allow the miscellaneous applications raising additional grounds of appeal and consider the same as being incorporated in the memorandum of appeal.

(3.) THE basic facts that arise for consideration are that the main appellant herein M/s. Acmechem Ltd. was charged with an allegation that they have availed MODVAT/CENVAT Credit for the period 30.12.1998 to 08.01.2002 without receiving the material and based on only the invoices raised by registered dealer. Other two applicants are individuals on whom penalty has been imposed. The main appellant M/s. Acmechem Ltd. as well as other appellants contested the show cause notice issued to them before the adjudicating authority. The adjudicating authority confirmed the demand and also imposed penalties on all the appellants, along with interest from the main appellant.