SPORTKING SYNTHETICS Vs. COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH

JUDGEMENT

(1.) THIS appeal has been filed by the appellants against the impugned order of the Commissioner (Appeals) dated 20.10.2000 vide which he had upheld the Order -in -original dated 13.9.99 of the Deputy Commissioner who disallowed the modvat credit of Rs. 34,60,907/ - to the appellants and imposed penalty of Rs. 3,00,000/ - on them.

(2.) None has come present on behalf of the appellants. Their counsel had sent a request for an adjournments. But we do not find any sufficient ground to allow an adjournment as the record shows that on earlier dates also the counsel sought adjournments on one pretext or the other. Therefore, we proceed to decide the appeal on merit after hearing the learned SDR.

(3.) THE appellants were engaged in the manufacture of yarn. They availed modvat credit of Rs. 34,24,003/ - on the bill of entry on the basis of which they imported the input namely acrylic fibre, without payment of basic customs duty, special customs duty and additional customs duty under the Duty Entitlement Pass Book (DEPB) Scheme. They could not take modvat credit legally for having imported the input free of duty and they were served with a show cause notice. However, they later on reversed the modvat credit in the statutory record, of the entire amount. The Deputy Commissioner disallowed the modvat credit of the amount in question referred to above and adjusted the same towards the payment of duty, as already debited by the appellants vide PLA Entry Nos. 202 and 204 dated 6.10.98 and RG -23A Part -II entry No. 1601 dated 6.10.98. He also imposed penalty of Rs. 3,00,000/ - on them. The Commissioner (appeals) had affirmed that order.