SUPREME INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE Appellants, M/s. The Supreme Industries Ltd., are engaged in the manufacture of plastic articles, availing Modvat credit: on the inputs received by them for use in their final products.

(2.) THE Central Excise officers visited their factory on 01.09.1999 and conducted checks. At the instance of the officers, the appellants paid an amount of Rs. 2,69,799/ - (Rupees Two Lakhs Sixty Nine Thousand Seven Hundred Ninety Nine only) being the Modvat credit availed by them on the inputs contained in the scrap found short, by debiting the same in RG23A Part II register on 02.09.1999.

(3.) THE allegation against the appellants in the Show Cause Notice issued later was that they had taken Modvat credit on the inputs and indulged in clandestine clearance of the inputs (LDPE granules) in the guise of scrap. According to the Appellants, the Adjudicating Authority (Additional Commissioner), went by assumption and presumption, and both Additional Commissioner and the Commissioner(A), (whom they had approached with a memorandum) had not even discussed the various pleas made by them in their respective orders. They did not give any findings either accepting or rejecting such pleas.