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of <h1>Tribunal Remands Order for Reevaluation of Modvat Credit Eligibility & Duty Calculation</h1> <h3>BELLARY STEELS & ALLOYS LTD. Versus COMMISSIONER OF C. EX., BELGAUM</h3> BELLARY STEELS & ALLOYS LTD. Versus COMMISSIONER OF C. EX., BELGAUM - 2005 (180) E.L.T. 343 (Tri. - Bang.) Issues: Violation of Principles of Natural Justice, Eligibility of Modvat credit for PVC Pipes used outside the factory, Correct calculation of duty, Time bar for demands, Imposition of penalty under Section 11AC.Violation of Principles of Natural Justice:The appeal arose from an ex parte order passed by the Commissioner of Central Excise, Belgaum, confirming demands and imposing penalties without granting the appellant a proper hearing. The appellant contended that they had requested an adjournment with valid reasons, but the Commissioner proceeded without considering their request, leading to a violation of Principles of Natural Justice. The Tribunal found that the appellants were prevented from appearing due to sufficient reasons, and the matter was required to be remanded for de novo consideration to ensure compliance with Principles of Natural Justice.Eligibility of Modvat credit for PVC Pipes used outside the factory:The appellants argued that they were eligible for Modvat credit for PVC Pipes used to draw water from a well situated outside the factory for manufacturing steel. They relied on the case of CCE, Chennai v. Pepsico India Holdings Ltd. to support their claim. The Tribunal acknowledged the need to examine this point further and remanded the matter for the Commissioner to reconsider the eligibility of Modvat credit for PVC Pipes used outside the factory.Correct calculation of duty:The appellants contended that the duty computation was not properly worked out, and even in a worst-case scenario, the duty liability would be significantly lower than the amount confirmed in the appeal. They provided evidence to support their claim, which the Tribunal deemed necessary to be considered by the Commissioner for reevaluation. The matter was remanded for the correct calculation of duty.Time bar for demands:The appellants raised the issue of time bar for the demands, arguing that the demands were barred by time as the Department was fully aware of the facts and circumstances of the case. They referred to judgments by the Apex Court to support their plea. The Tribunal directed the Commissioner to reexamine the plea of time bar in light of the relevant judgments.Imposition of penalty under Section 11AC:The learned SDR defended the imposition of penalty under Section 11AC, while the appellants argued that it was not imposable and cited various judgments to support their position. The Tribunal did not provide a specific ruling on this issue in the summary provided.In conclusion, the Tribunal found that the impugned order violated Principles of Natural Justice and remanded the matter for de novo consideration by the Commissioner of Central Excise, Belgaum. The eligibility of Modvat credit for PVC Pipes used outside the factory, correct calculation of duty, and the plea of time bar for demands were all directed to be reevaluated by the Commissioner in accordance with the Principles of Natural Justice.
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