ASSOCIATED ENGG. INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) Appellants filed these appeals against order in appeal passed by the Commissioner (Appeals).

(2.) Brief facts of the case are that appellants are engaged in the manufacture of Motor Vehicle parts and were availing the benefit of MODVAT credit. A show cause notice was issued to the appellants for recovery of MODVAT credit and for imposition of penalty on the grounds that they availed the benefit of credit on the basis of forged invoices of M/s. Steel Tubes of India Ltd., Ludhiana. The Adjudicating authority confirmed the demand and imposed the penalty on the appellants. Appellants filed appeals and the same were dismissed by the Commissioner (Appeals).

(3.) Learned Counsel submits that in this case benefit of MODVAT credit was availed on the invoices issued by M/s. Steel Tubes of India Ltd., Ludhiana on 17.6.94 and 28.6.94 and a show cause notice was issued on 30.9.96 by invoking the extended period of limitation under Rule 57(I) of Central Excise Rules on the ground of fraud. He submits that after taking the credit in their RG -23A Part II on 17.6.94 and 28.6.94, the appellants filed RT -12 Return on 5.7.94 and the same was assessed by the proper officer on 19.7.94 without any objection. He submits that the goods received from M/s. Steel Tubes of India Ltd., Ludhiana were defected and the appellants on 17.10.94, wrote a letter to the Assistant Commissioner of Central Excise, Faridabad, informing him for removal of inputs under rule 57F of the Central Excise Rules and also filed the classification list showing the rate of duty. This letter was received in the office of Assistant Commissioner on 7.10.94 and, thereafter, these defective goods were sent to the manufacturer under invoices issued on 10.10.94 on payment of appropriate duty. The appellants also filed RT -12 Return on 4.11.94, and this return was assessed by the proper Officer on 22.3.95.