SUNDEEP ELECTRODES PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal against the impugned order whereby credit of Rs. 40,772/ - was disallowed and penalty of Rs. 50,000/ - was imposed.

(2.) THE appellants are engaged in the manufacture of welding electrodes. The appellant started availing the benefit of small -scale exemption notification No. 1/93 with effect from 1.4.95 and at that time the appellant reversed the credit lying in their credit accounts. Thereafter, on 31.5.95 as the appellant crossed the limit of exemption and started clearing the goods on payment of duty, filed a declaration under Rule 57 -H of Central Excise Rules for taking credit in respect of the inputs lying in stock, under process and contained in the final product. A show -cause notice was issued for denying the credit of Rs. 40,772/ - on the ground that the credit has already been availed by the appellant in the year 1993 -94 and 1994 -95 as the invoices were defaced at the time of taking credit.

(3.) THE adjudicating authority confirmed the demand and imposed penalty of Rs. 50,000/ -. The appellant filed appeal and Commissioner (Appeals) rejected the appeal. The Tribunal remanded the matter vide order dated 12.11.97 to the adjudicating authority setting aside the denial of credit on the ground that invoices were already defaced. However, the Tribunal directed the lower authority to verify the existence of stock of the subject inputs. Thereafter, again the adjudicating authority confirmed the demand and Commissioner (Appeals) remanded the matter to the adjudicating authority to decide afresh. The adjudicating authority again confirmed the demand and imposed penalty. The Commissioner (Appeals) dismissed the appeal. The present appeal is against the order passed by the Commissioner (Appeals). I find that the Tribunal initially remanded the matter to the adjudicating authority to verify the existence of the inputs lying in stock.