PRAKASH INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Heard both sides.

(2.) The applicant filed this appeal against order -in -appeal passed by Commissioner (Appeals) whereby the benefit of Modvat credit of Rs. 5,29,893/ -was disallowed.

(3.) The brief facts of the case are that the appellants are engaged in the manufacture of TV picture tubes and they were clearing the same on payment of appropriate duty. The appellants were also exporting the goods manufactured by them. Subsequently, the appellants were filing rebate claim under Rule 12 of Central Excise Rules in respect of the goods exported by them. The rebate was allowed as claimed by the appellant. Subsequently, on verification it was found that appellant claimed higher rebate. Therefore, the Revenue wrote a letter dated 16 -6 -1998 directing the appellant to deposit the excess amount of rebate sanctioned to them. The appellant deposited the amount of Rs. 5,29,893/ - in pursuance to this letter. After depositing this amount the appellant took credit in their RG 23A Part -II as Modvat credit. A show -cause notice was issued to them disallowing this credit on the ground that as the appellant paid this amount as excess rebate, therefore, they are not entitled for the credit.