NETPLAST LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants have filed this appeal being aggrieved by the Order of Collector (Appeals). The Collector (Appeals), in his order, dated 26 -5 -1995 upheld the order of Asstt. Collector confirming the demand of Rs. 20,793/ -.

(2.) THE facts of the case, in brief, are that the appellants are engaged in the manufacture of goods falling under Tariff Items 8714, 8708, 8529 and 8513 of the Central Excise Tariff Act, 1985. The appellants are availing credit facility on the strength of the declaration filed by them under Rule 57G. While checking the RT 12 returns for the month of February, 1994, the Central Excise officers observed that the appellants have availed Modvat credit amounting to Rs. 20,793/ - on the basis of photocopy of the Gate Pass No. 0723, dated 25 -1 -1994. The Department alleged that since the appellants did not have the original duty paying documents, they were not entitled to avail credit of duty paid on inputs under the Modvat scheme in respect of this photocopy of the gate pass. Accordingly, a show cause notice was issued to the appellants, asking them to explain as to why Modvat credit amounting to Rs. 20,793/ -should not be disallowed to them and recovered from them under Rule 57 -I of the Central Excise Rules, 1944.

(3.) IN reply to the show cause notice, the appellants submitted that they were registered with the Central Excise for manufacture of the items stated above; that they were taking Modvat on the inputs; that they filed the declaration under Rule 57G; that when the consignment was received from the transporters, they did not receive the original copy of the gate pass; they wrote to the supplier in Madras to send the appellants a proof so that credit of duty on the inputs under the Modvat scheme may be taken; that on receipt of the photocopy of the said gate pass, they took Modvat credit; that the supplier of the inputs again sent a photocopy of the said GP1 duly attested by the Supdt., Central Excise. The Asstt. Collector, after considering all the submissions made by the appellants disallowed Modvat credit amounting to Rs. 20,793/ - under Rule 57 -I of the Central Excise Rules. The appellants filed an appeal before the Collector (Appeals). The Collector (Appeals), upheld the order of the Asstt. Collector. Against this order of the Collector (Appeals), the appellants have come up in appeal before me.