SIDDHARTHA TUBES LTD Vs. CEGAT

JUDGEMENT

(1.) THIS writ is under Article 227 of Constitution of India. In this writ challenge is to an order dated 7-9-2002 (sic) (Annexure P/1) passed by Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short CEGAT) whereby the Petitioner's second appeal arising out of order dated 30-11-2000 passed by Commissioner (Appeals) which again arise out of an order dated 30-9-1998 passed by Assistant Commissioner (Adjudicating Authority) has been dismissed.

(2.) IN substance the dispute before the Adjudicating Authority was in relation to claiming of Modvat credit by the petitioner on certain items amounting to Rs. 12,64,912/- and on Rs. 4,88,636/- the contention of petitioner was that they have rightly claimed Modvat credit on the items (inputs) whereas the contention of the department was to the contrary. According to Departmental Authorities, the petitioner was not entitled to avail of the benefit of Modvat credit and hence they, having claimed wrongly, are entitled to pay the said sum and also the penalty. It is this issue which eventually was decided by the Assistant Commissioner (Adjudicating Authority) by his order dated 30-9-1998 against the petitioner. It was inter alia held that Petitioner was not entitled to avail of the Modvat credit of Rs. 12,64,912/- and Rs. 4,88,636/ -. It was accordingly disallowed. The Adjudicating Authority also imposed a penalty of Rs. 1,25,000/- and Rs. 50,000/- - Rs. 1,75,000/ -. This order was challenged in appeal by the petitioner. It was dismissed by Commissioner of Appeals, by his order dated 30-11-2000/5-12-2000. Petitioner then filed Second Appeal to Tribunal which too was dismissed by impugned order giving rise to filing of this writ.

(3.) THE Respondent (departmental authorities of Excise) has defended the impugned orders and prayed for their upholding.