ALLIED STEELS AND STANDARD Vs. CCE

JUDGEMENT

(1.) THESE three appeals (Excise Appeal No. 5172 of 2004 and Excise Appeal No. 5216 of 2004) have been argued together and are being disposed of by a common judgment.

(2.) APPEAL No. 5172 of 2004 and Excise Appeal No. 5216 of 2004 are directed against the order of the Commissioner made on 26.7.2004 upholding the order -in -original made by the Joint Commissioner (Audit) by which he confirmed the demand for recovery of Rs. 1,21,359/ - being the amount of modvat credit wrongly availed by the noticee No. 1 i.e. Standard Electricals Limited, Jalandhar, under Rule 57 -I of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 and imposing penalty of the like amount on the said noticee under Rule 173Q(1)(bb) of the Rules and further imposing penalty of the like amount also on the (Noticee No. 2) Allied Steel under Rule 173Q(1)(bbb) read with Rule 209A of the said rules and charging interest from the noticee No. 1 on the amount of modvat credit. 2. Appeal No. 5215 has been filed by the appellant Standard Electricals Limited against the order of the commissioner (Appeals) made on 26.7.2004 confirming the demand for recovery of Rs. 19,689/ - being the amount of modvat credit wrongly availed by the appellant and imposing penalty of the like amount as well as charging interest thereon. It appears that no appeal is filed by the noticee No. 2 M/s Sudarshan Steels.

(3.) IN Central Appeal Nos. 5172 and 5216, according to the Revenue the inquiries revealed that the appellants Standard Electricals Limited had purchased C.R. Coils from the other appellant M/s Allied Steel under five different invoices (Nos. 40 and 41 both dated 31.7.98, No. 56 dated 11.9.98, No. 57 dated 12.9.98 and No. 60 dated 23.9.98) and taken modvat credit in their RG23A part -II. During the enquiry, it transpired that the C.R. coils were taken from the premises of M/s RSD Steels Cutters and not from the dealer's premises. The dealer i.e. M/s Allied Steels had unloaded the goods in the premises of M/s RSD Steel Cutters and the goods were admittedly got cut there at the instance of the consignee appellant - Standard Electricals Limited. In this background, show cause notices were issued on the ground that the dealer had issued modvatable invoices in respect of consignment of C.R. coils which was not received or stored in his registered premises and, therefore, modvat credit was availed on the basis of such wrong, invalid and modvatable invoices. By show cause notice dated 15.02.2002, the appellant Standard Electricals Limited was called upon to show cause as to why the modvat credit of Rs. 1,21,359/ - should not be recovered and why penalties indicated should not be imposed. Notice for penal action was also issued against the dealer M/s Allied Steels.