E.C.E. INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) THE brief facts of the case are that appellants M/s. ECE Industries Ltd., Sonepat, manufacture Electrical Transformers and Components falling under sub -heading No. 8504. They are also availing modvat credit facility. They received back defective electrical transformers in their factory for repairs within and beyond warrantee/guarantee period under Rule 173H. During the checking of form -V register maintained under Rule 173H, it was observed that the party was using modvat credit availed on the inputs in the repair of such defective transformers received by them for repairs. These transformers after repairs were being cleared at nil rate of duty. The party was neither reversing the modvat credit taken on such inputs used in the repair nor the duty was being paid on these inputs. Accordingly the proceedings were initiated against them and they were issued show cause notice dated 4.4.1994, calling upon them to show cause why the duty amounting to Rs. 63,007.41 on inputs used in such defective transformers received for repairs during the period from 5.10.1993 to 7.1.1994 should not be recovered from them under Rule 57 -1 read with Section 11A of the Central Excise Act 1944.

(2.) The above proceedings culminated in the Additional Collector of Central Excise, Gurgaon passing an order dated 31.10.1994 in which she ordered for recovery of the aforesaid amount from the appellants.

(3.) THE party filed an appeal, but the same stood rejected by Commissioner (Appeals), New Delhi vide his order dated 20.9.1995.