ADHESIVES AND CHEMICALS Vs. CCE

JUDGEMENT

(1.) THE impugned Order disposes of two appeals against two different orders -in -original passed by the Assistant Commissioner vide which he has disallowed Modvat Credit of Rs. 64,509.00 in the first case and of Rs. 20,387.87 and Rs. 19,589.58 in the second, under Rule 571 and has also imposed penalty of Rs. 1,000.00 and Rs. 10,000.00 respectively under Rule 173Q of Central Excise Rules, 1944.

(2.) THE authorities below have disallowed the Modvat Credit on the ground that the gate passes issued by M/s. SAIL bore a rubber -stamp marked as - "Not applicable for Modvat". Further, the said gate passes also did not indicate the PLA number of RG -23A Part -II, to show the debit of the duty paid thereon. The Central Excise Authorities did not accept the said gate passes as valid duty paying documents and hence rejected the Modvat Credit to the above extent.

(3.) COUNTERING the arguments, Shri R.K. Roy, learned JDR submits that the Modvat credit has been rightly denied by the authorities below on the basis of gate passes which clearly contain that the same are not meant for Modvat purposes. Moreover, no particulars of debit entries were there in the gate passes. As the Credit was originally taken on the basis of gate passes and the invoices were produced subsequently, Modvat Credit has been rightly denied to the applicants/appellants. In the circumstances, he prays for rejection of the Applications.