COMMISSIONER OF C EX Vs. FRIENDS AUTO INDUSTRIES

JUDGEMENT

(1.) The revenue has impugned the order dated 12-5-2005 (Annexure A3) passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, vide which, the order passed by the adjudicating authority was set aside and it was held that there was no evidence to show that on the date of filing the declaration, the goods were not found lying in the factory premises of the Respondent or that the goods were never received at all and that they availed the MODVAT credit only on the basis of invoices.

(2.) The Respondent sought the MODVAT credit on the basis of the goods, which were lying in the factory premises at the time of filing of the declaration regarding MODVAT credit. The claim of MODVAT credit of the Respondent was cleared by the department. However, the adjudicating authority, on the basis of audit report, disallowed the MODVAT credit and imposed the penalty. The appeal filed by the Respondent was dismissed.

(3.) The Tribunal came to the conclusion that once the declaration filed by the Respondent was found correct and the MODVAT credit was granted to the Respondent, then the same could not be revoked on the basis of the audit report.