GREWAL INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) IN this appeal, which has been filed against the impugned order -in -original, the issue relates to the denial of Modvat credit to the appellants on GP sheets.

(2.) THE credit on the GP sheets for the disputed period April, 1995 to June, 1999 has been sought to be denied to the appellants by the Revenue on the ground that these could neither be used as inputs nor were actually used for the manufacture of OE parts. They in fact used HR/CR sheets as inputs/raw material for the manufacture of the parts after procuring from the open market and the GP sheets, which were purchased by them from registered dealers, were clandestinely sold by them in the market to the main users.

(3.) ADMITTEDLY , the appellants are engaged in the manufacture of OE parts (Refrigerators, Engines, Tractor parts). The GP sheets were purchased by them from the registered dealers under the duty paid invoices for use in the manufacture of OE parts. The allegations levelled by the Revenue against the appellants are that these sheets could not be used for the manufacture of OE parts and were also not actually used, but disposed of in the open market in a clandestine manner. The appellants used only HR/CR sheets in the manufacture of the OE parts, after purchasing from the market.