STERICAT GUTSTRINGS (P) LTD Vs. CCE, DELHI

JUDGEMENT

(1.) In this case, modvat credit of Rs. 1,45,292/ - has been disallowed on the ground that this amount of credit was taken on the strength of an invoice dated 6.3.95 issued by the depot of the manufacturer who was not registered with the Cental Excise Department in terms of Rule 57GG of the Central Excise Rules. In addition of penalty of Rs. 10,000/ - has been imposed.

(2.) Learned Counsel, Shri J.S. Agarwal submits that credit was not taken on the basis of the invoices dated 6.3.95 because it is only a bill be realisation of money and he submits that the applicants took credit on the strength of invoice No. 1214 dated 6.10.94 and invoice No. 1317 dated 22.10.94 and the customer in both these invoices is the applicant herein. He, therefore, submits that credit has been rightly availed of and, therefore, prays for waiver of predeposit of duty and penalty.

(3.) Opposing the prayer, learned SDR, Shri Jain draws my attention to the invoice at page 13 and 14 of the paper book viz. invoice No. 1214 and 1317 and submits that these cannot be the invoices on which the applicant took credit since in both these invoices the consignee is Blue Star Ltd., New Delhi and not the applicant herein. He, therefore, prays that the applicants may be directed to deposit the entire amount of duty and penalty.