COMMISSIONER OF C. EX. Vs. AGGARWAL IRON INDUSTRIES

JUDGEMENT

(1.) The appellant is a manufacturer of Nuts and bolts. It is entitled to Central Excise duty on inputs. Accordingly, it took credit of duty paid of about Rs. 48,000/ - in respect of three consignments received from M/s. Thapar Concast Ltd., Ludhiana during July, September 1999. This credit was denied and equal amount of penalty imposed on the appellant by the Additional Commissioner on the ground that the appellants' supplier had misdeclared the products. It was also held that the goods were correctly liable to duty under compounded levy scheme. The assessee filed appeal before the Commissioner. The Commissioner noted that duty amount taken by the assessee was equal to the duty discharged the goods. He, therefore, held that there was no ground for denial of credit. He relied upon the decision of this Tribunal in the case of C.C.E. v. Ashok Leyland Ltd, - 2001 (127) E.L.T. 804. The present appeal of the Revenue challenges that order.

(2.) I have heard the learned DR and perused the records. None has appeared for the respondent assessee. It is well settled credit to be taken is the actual duty paid and that the buyer has no responsibility in regard to ensuring that duty has been correctly paid by the manufacturer of the inputs. The rule permits variation of Modvat credit only on account of a finding in a proceeding against the supplier of the inputs that the duty has not been correctly paid. Thus variation of Modvat credit amount can be consequential only. This is not the case here. The original assessment of inputs has not been varied. Therefore, there is no error in the order passed by the Commissioner. The Revenue appeal has no merit. It is rejected.