RAJASTHAN EXPLOSIVES, SHRI Vs. CCE JAIPUR

JUDGEMENT

(1.) These stay applications arise out of appeals Nos.E/31 -33 and 92/2001 -NB filed by the appellant against common order in original dated 3.11.2000 passed by the Commissioner of Central Excise, Jaipur vide which he had disallowed modvat credit of Rs.30,96,349/ - to the company appellant no.(1) and imposed penalty of equal amount under Rule 57 -I(4) and of Rs.10 lakhs under Rule 173 -Q of the Central Excise Rules, alongwith the interest on them.He also imposed penalty of Rs.20 lakhs on Managing Director of the company Shri Rajesh Jain, appellant no.(2) and of Rs.1 lakh each on Shri B.D.Agarwal, Vice President(Commercial) and Shri A.K.Jain, Vice President(Production) of the company, appellants Nos.(3) and (4) respectively. No penalty, however, has been imposed no M/s.HNPEL under Rule 173 -Q(1)(bbb) of the Rules.

(2.) The company,appellant no.(1) was engaged in them manufacture of explosives.On 8.11.97 the Central Excise Officers visited the factory premises and resumed several incriminating documents.On examination of these document, it revealed that the company availed modvat credit in respect of 269 MTs of Bel -Gelation on the basis of invoices issued by M/S.HNHEL Sohna and also seven consignments of special ordinary/plain detonates as detained in the Annexure 'B'; to the show cause notice.It was also noticed that the impugned consignments of the inputs were not at all received at the factory premises of the company and modvat credit of the amount in question was wrongly utilised by them for payment of the duty on the final product.The show cause notice was accordingly issued to the company as well as to the other appellants being the Managing Director and the Vice President, Commercial and Production,for the recovery of the modvat amount illegally utilised and also for taking panels action.the show cause notice was also issued to Shri Ganesh Mathur of M/s.HNEPL. After getting their reply wherein the appellants controverted the allegations levelled against them in the show cause notice, the Commissioner through the impugned order disallowed the modvat credit and imposed penalty alongwith the interest on company(Appellant No.1) and also on other appellants as detailed above. No penalty, however, was imposed on Shri Ganesh Mathur, M.d. of M/S.HNEPL,Sohna.

(3.) Through the present stay applications the appellants have sought the complete waiver of the amounts detailed above for the purposes of hearing of their appeals.The waiver of the modvat amount disallowed and the penalties imposed in the impugned order, has been sought by the company appellant No.(1) mainly on the ground that it had already been declared sick industrial unit under the Sick Industrial (Special Provisions) act, 1985 for having gone in losses.The counsel has also referred to the Tribunal's judgment recorded in the case of Amrit Papers Vs. CCE Chandigarh 2001(128)ELT 67.