CCE Vs. HOTLINE CPT LTD.

JUDGEMENT

(1.) THE instant appeal is filed by the Revenue against the order of the Commissioner (Appeals).

(2.) THE brief facts of the case, are that the respondents are engaged in the manufacture of colour picture tubes. It has been alleged that the respondent sent defective colour tubes under the cover of Rule 57F(4)'s challan to the suppliers of picture tubes viz., M/s. BPL Display Devices Ltd., M/s. Samtel Colour Ltd. and M/s. Hotline CPT Ltd. (formerly known as LG Hotline CPT Ltd.) and had colluded with these suppliers to facilitate them to avail inadmissible Modvat credit in respect of fresh non -duty paid colour picture tubes supplied under the garb of repaired CPTs received from M/s. Hotline Wittis Display Devices Ltd. under the cover of Rule 57F(4) challan. It has further been alleged that conspiracy has been hatched between H.W.D. D. Ltd. and the supplier to send the defective picture tubes under the guise of challan issued under Rule 57F(4) of the Central Excise Rules.

(3.) THE Joint Commissioner of Central Excise, Noida confirmed the demand of duty and imposed penalty of Rs. 3,00,000/ - upon the appellant. The Commissioner (Appeals) allowed the appeal with consequential relief. The relevant portion of the findings of the Commissioner (Appeals) are reproduced below: