PIONEER AUTO INDUSTRIES Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) THE appellants were issued a Show Cause Notice dt. 31.12.94 by the Asst. Collector of Central Excise, Ludhiana, in which it was alleged that they had taken modvat credit of Rs.80,594/ - on the strength of invoices issued by the suppliers of raw materials in respect of whom, it had not been established by providing necessary evidence that they were the wholesale dealers/distributors of the manufacturers. It was further alleged in this notice that the party had taken modvat credit of Rs.1,175.02 on the basis of invoice issued by supplier who had not got himself registered with the Central Excise Department for the purpose of issuing invoices under Rule 57G of the Central Excise Rules, 1994. It is therefore alleged that appellants had wrongly availed modvat credit totally amounting to Rs.81,769.02 in contravention of Rule 57 -A and 57 -G read with Notfn. No.15/94 -CE(NT) dt. 30.3.94. They were therefore, called upon to show cause why the aforestated amount of modvat credit should not be disallowed and recovered from them under Rule 57 -I of Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 and why penalty should not be imposed on them under Rule 173Q (i) (bb).

(2.) ON consideration of the reply of the party the Deputy Commissioner of Central Excise, Ludhiana vide his Order dt. 21.12.95, disallowed the modvat credit of the above said amount to the party apart from imposing a penalty of Rs.15,000/ - on them.

(3.) THE appeal of the party against the above order of the Dy. Commissioner of Central Excise failed and the Commissioner (Appeals), Chandigarh vide his Order dt. 13.6.2000 upheld the findings arrived at by the lower authority dismissing their appeal.