FERRO METALS Vs. CCE

JUDGEMENT

(1.) THESE appeals are directed against order in appeals dated 26th February, 2004. Since, the issue involved in both the appeals is common is in respect of the same appellant, both the appeals are taken up and disposed of by a common order.

(2.) THE relevant facts that arise for consideration are the appellant is registered dealer and had issued modvat credit invoices based upon the invoices and the material received from M/s Tara Re -Rolling Mills, Tedesara. Investigation on Tara Re -Rolling Mils divulged that the said re -rolling mill was not able to produce the goods hence waste and scrap could not have arisen in the factory, the whole exercise was done in collusion to pass on ineligible modvat credit. Show cause notice was issued to the appellant on 14/07/2000 for imposition of penalty under Rule 173 -Q(1) of the Central Excise Act 1944 read with Rule 226 and 209A. The appellants contested the show cause notice on time bar and also on merit. Adjudicating authority imposed penalty on the appellant, an appeal against the order also met with the same fate.

(3.) THE learned advocate appearing for the appellants submits that the whole issue is hit by limitation.