M/S JAGAN TUBES LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) THIS appeal has been filed by the appellant against the impugned order in appeal dated 23/29.11.2000 vide which the Commissioner (appeals) has upheld the order in original dated 16.7.99 of the Dy. Commissioner, Central Excise who confirmed the demand of duty of Rs. 916919/ - under Rule 57 -I of the Central Excise Rules and imposed penalty of Rs.1 lakh under Rule 173Q of the Rules on them.

(2.) The appellants were engaged in the manufacture of tubes and pipes. They were availing modvat credit on various inputs and capital goods under Rule 57A/57Q of the Rules. However, on scrutiny of their RT -12 return for the period September 97, October 97 and November 97 to March 98 it revealed that they had taken modvat credit on the strength of invoices issued by the manufactures of hot re -rolled products of non -alloy steel, at the rate of 12% of the value in terms of Notification No. 58/57 dated 30.8.97. But those invoices did not carry the statutory declaration in terms of clause (4) of the said Notification to the effect that appropriate duty of Central Excise had been paid on the inputs. Accordingly, two show cause notices were issued to the appellants for recovery of the amount in question availed by them of modvat credit. They in their reply, reiterated the correctness of the invoices and availment of the modvat credit on those basis rightly. But the Dy. Commissioner did not accept their version and confirmed the demand of Rs. 916919/ - under Rule 57 -I of the Rules and imposed penalty of Rs.1 lakh on them, through order in original dated 16.7.99. They no doubt challenged the said order of the Dy. Commissioner in appeal before the Commissioner (Appeals), but the same was dismissed through the impugned order.

(3.) WE have heard both the sides and gone through the records.