CENTRICAST ENTERPRISES Vs. COMMISSIONER OF C. EX., AHMEDABAD

JUDGEMENT

(1.) THESE appeals are directed against order -in -appeal dt. 22 -5 -06.

(2.) THE appellant company is in appeal against the order for denial of Modvat credit to them, while the Revenue is in appeal against setting aside the penalty on the appellant by Commissioner (Appeals).

(3.) THE relevant facts that arise for consideration are that appellant company was availing Modvat credit on the duty paying documents received by them from two registered dealers. The allegations in the show cause notice are that the appellant company availed Modvat credit based only on the documents and did not receive any input as indicated in the said duty paying documents. Appellant company contested the show cause notice on the ground that the statement recorded of the proprietor of the registered dealer categorically mentions that the inputs/goods as mentioned in the invoice were supplied by them and they also challenged the show cause notice on the time bar issue. The adjudicating authority did not accept the contention of the appellant and confirmed the demand and also imposed penalty. Aggrieved with the said order, appellant company went into appeal to the Commissioner (Appeals). Learned Commissioner (Appeals) after granting personal hearing to the appellant company upheld that portion of the order which confirmed the demand against the appellant company, on the same ground as held by adjudicating authority and set aside the penalty imposed on the ground that duty has been paid before issue of show cause notice. Appellant company and Revenue both are challenging that portion of the order.