COMMISSIONER OF CENTRAL EXCISE Vs. CHEMVIN INDUSTRIES

JUDGEMENT

(1.) This is a petition by the Department for reference of the following question of law for the opinion of this Court:

(2.) Respondent No. 1 is engaged in the manufacture of PVC rigid pipes and parts thereof falling under Chapter sub-heading 3917 of the Schedule to the Central Excise Tariff Act, 1985. It has been availing Modvat credit under Rule 57A of the Central Excise Rules, 1944 (for short, the "Rules"). In the year 1994, respondent No. 1 availed Modvat credit of Rs. 4,02,324/- on the strength of invoices issued by registered dealers. Additional Commissioner (Technical), Central Excise Department, Chandigarh issued show cause notice dated 23-2-1995 to respondent No. 1 proposing to recover the Modvat credit on the premise that the invoices at Sr. Nos. 1 to 8 annexed with the show cause notice did not contain complete particulars as required under Notification No. 33/94-C.E. (N.T.), dated 4-7-1994. Respondent No. 1 justified its action of availing the Modvat on the basis of disputed invoices by making the following submissions :

(3.) Respondent No. 1 also produced photostat copies of the invoices which were duly verified by the jurisdictional Assistant Commissioner vide his note dated 4-8-1995. However, the Additional Commissioner did not accept the explanation of respondent No. 1 and confirmed the proposed recovery by recording the following reasons :