ALFA MACHINERY MAKERS Vs. C.C.E., CHANDIGARH

JUDGEMENT

(1.) The appellants filed this appeal against the order -in -appeal dated 13.6.2000 passed by the Commissioner (Appeals).

(2.) Brief Facts of the case are that the appellants are engaged in the manufacture of machinery and parts thereof and were availing the benefit of MODVAT credit on the inputs used in the manufacture of final product. During the period from August, 94 to December, 94, the appellants availed the credit on their input, viz., pig iron on the basis of invoices issued by the depot of Visakhapatnam Steel Plant and the depot is not registered as dealer with the revenue department. The appellants also availed the MODVAT credit in respect of lathe machine as an input. A show cause notice was issued to the appellants on the ground that the extension counter, which supplied the inputs, is not registered with the revenue authorities. Therefore, such invoices are not valid duty -paying documents and the lathe machine is not an input.

(3.) The adjudicating authority confirmed the demand and imposed a penalty of Rs. 50,000/ -. The appellants filed an appeal and the same was rejected.