LTDBOC INDIA LTD Vs. CCE NEW DELHI

JUDGEMENT

(1.) THIS appeal has been filed by the appellants against the order in appeal dated 8.12.99 vide which the Commissioner(Appeals) had affirmed the order in original dated 25.1.97 of the Additional Commissioner disallowing modvat credit of Rs.1,70,460.30 to the appellants.

(2.) THE facts giving rise to this appeal may briefly be stated as under:

(3.) THE appellants are engaged in the manufacture of oxygen gas, dissolved acetylene dry nitrogen etc. They availed modvat credit of Rs.2,90,350.77 on the basis of original invoices other than the transporter's copy, but the same was inadmissible as per amendment of Rule 57 -G (20 vide Notification No.23/94 -CE(NT) dated 20.5.94. They were accordingly issued show cause notice dated 27.9.94 vide which recovery of modvat credit amounts under Rule 57 -I of the Central Excise Rules was proposed to be made from them. However, that show cause notice was later on, amended by issuing corrigendum dated 26.2.96 wherein the amount recoverable was corrected to Rs.2,86,772.77 instead of Rs.2,90,350.77. In reply to that show cause notice the appellants, however, pleaded that they had already submitted application through letter dated 27.7.94 for permission in terms of Rule 57 -G (2A) to avail modvat credit on the basis of the invoices dated 25.5.94, 16.5.94, 27.5.94 and 14.5.94 of Rs.70,077.48. Regarding other invoices vide which the modvat credit of Rs.122743.10 was availed, they submitted that invoice copies marked with 'Duplicate from Transporter' had been produced before the Superintendent and earlier they were misplaced and for that reason could not be produced. They, however, admitted that on the basis of these 'Transporters' copies the modvat credit was claimed but was not claimed on the original. Similarly regarding the remaining invoices on the strength of which they took modvat credit of Rs.88622.82 they alleged that the 'Duplicate Transporters' copies were lost in transit and for that reason modvat credit on the basis that reason modvat credit on the basis of original invoices had been taken. The Additional Commissioner after hearing the appellants confirmed the demand of 1,70,460/ - and dropped the demand for remaining amount of Rs.116312/ - against the appellants through the order in original. His order had been affirmed by the Commissioner (Appeals) through the impugned order.