THIRD MEMBER ON REFERENCE : SHRI P.G. CHACKO, MEMBER (J) SHREEJI COLOURCHEM INDUSTRIES Vs. COMMR. OF C. EX. & CUS., VADODARA

JUDGEMENT

(1.) THE five appellants are before us against the order passed by the Commissioner demanding modvat credit of Rs. 13,59,618/ - taken by the Shreeji Colourchem Industries (hereinafter referred to as SCCI), denying modvat credit of Rs. 11,56,282.22 to M/s. Nandesari Rasayanee Limited (hereinafter referred to as NRL), demanding Rs. 1,04,350/ -, modvat credit taken second time on the same gate passes by SCCI and penalties of Rs. 2,50,000/ - on Shri K.K. Agarwal, Director of both SCCI and NRL, Rs. 25,000/ - on Shri V.L. Chalke, employee and Rs. 10,000/ - on Shri P.G. Thakkar, another employee.

(2.) THE facts leading to the adjudication proceedings and the appeals are, briefly explained below :

(3.) THE appellants challenge the order on the following grounds -