COMMISSIONER OF CENTRAL EXCISE, JAIPUR Vs. RUNTHALA INDUSTRIES

JUDGEMENT

(1.)

(2.) THE Deputy Commissioner of Central Excise, Jaipur vide his order dated 5.11.99 disallowed the modvat credit totally amounting to Rs. 76,022/ - to the respondents apart from imposition of penalty of Rs. 2000/ - on them. The Deputy Commissioner in this order has observed that since the manufacturers of the inputs have not discharged their full duty liable under Section 3A of the Central Excise Act, 1944, the credit of the stated amount @ 12% of the value of invoice taken by the assessee is not admissible to them as the assessee has not ensured regarding full payment of Central Excise duty under Section 3A by the manufacturer.

(3.) THIS is the Revenue appeal against impugned order of Commissioner (Appeals). The respondents have also filed cross objections. I have heard Shri V.K. Verma, JDR for the appellants and Shri Bipin Garg, Advocate for the respondents. I have considered the submissions made before me by both the sides. On going through the written memorandum of appeal filed by the Revenue, it is observed that they are still harping that respondents have not ensured full payment of duty by the manufacturer as required under Rule 57A(6). This contention itself implies that there is some duty paid on the goods supplied to the respondents by the manufacturer. The appellants are not forthcoming as to what is the full amount of duty liable or required to be paid on the goods and what is the amount of short payment which would render the respondents ineligible for the availment of the modvat credit under the provisions of Notification No. 58/97 -CE dated 13.8.97 amended by Notification No. 2/98 -CE dated 10.3.98 as put up by them. In this view of the matter, I find no force in this appeal and the same is accordingly dismissed. The cross objections are also disposed of in the same terms.