MODULUS PREFAB SOLUTIONS Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition seeks quashing of order dated 26.11.2010, Annexure P-13, passed by the Member, Central Board of Excise and Customs, under Rule 12 CC of the Central Excise Rules, 2002 read with Notification No. 32/2006-CE (NT) dated 30.12.2006.

(2.) The Petitioner is manufacturer of Telecom Prefabricated Shelter/ Panels, Telecom Huts, Oil filters and other items and is registered with Central Excise Department. It uses galavanised corrogorated sheets (GC Sheets) and FRR Sheets for strengthening/ manufacturing the shalters/ panels/ telecom huts.

(3.) The department received information about evasion of duty by the Petitioner and issued a show cause notice dated 25.5.2010 under Section 11AC of the Central Excise Act, 1944 alleging that it was availing CENVAT credit, on Galvanized Corrugated Sheet without actual receipt and use of the same in manufacturing of final product, proposing recovery of about ' 70 lacs with interest and penalty. Before the said show cause notice was issued, the Chief Commissioner forwarded a proposal for action in terms of Rule 12 CC of the Central Excise Rules, 2002 read with notification dated 30.12.2006. After consideration of the said proposal, the Chief Commissioner made recommendations to the Board for passing an order under the Rules. Accordingly, the Board vide order dated 23.8.2010, after recording a prima facie finding of evasion of duty by the Petitioner passed order, the operative part of which is as under: