JAIN MANUFACTURERS Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

JUDGEMENT

(1.) LEARNED Advocate Shri P.V. Seth, appearing in support of the application for recalling of Order Nos. A/1108 -1111/WZB/06/C -III, dated 26 -7 -2005 submits that the said order was passed in the absence of the applicants/appellants, without considering their adjournment request filed in the Registry on 20 -7 -2005. As per Registrys report the said letter was received by them but could not be placed before the Bench disposing of the appeal. Accordingly, we recall the said order and proceed to dispose of the appeal itself after hearing learned Advocate and the SDR.

(2.) THE short issue involved in the present appeal is as to whether the appellant is entitled to the benefit of Notification No. 58/97 -C.E. (N.T.), which allow the deemed credit in respect of the inputs obtained from the manufacturer, the price of which stand paid by cheque or by bankers cheque. Admittedly, the amount of Rs. 68,782/ - on which deemed credit stand disallowed by the authorities to the extent of Rs. 8,254/ - was not paid by the appellants either by cheque or by demand draft or by bankers cheque. The same was adjusted against payment which the appellant was to take from the input manufacturer. Whatever the case may be, substantive condition of the notification, which allows availing of deemed Modvat credit only on payment having been made by cheque or demand draft, stand contravened. As such the lower authorities have rightly held that the appellant is not entitled to deemed Modvat credit. We, accordingly, find no merit in the appeal and the same is rejected. Application for restoration of appeal is also stand disposed of.