1997 (5) TMI 243

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.... for the Respondents. [Order]. -  Modvat credit of Rs. 2,66,547.94 has been disallowed to the appellants and a penalty of Rs. 10,000/- has been imposed upon them. The appellants are engaged in the manufacture of HDPE and Polypropylene bags, sacks and tapes etc. and were during the period working under the Modvat Scheme. As per the facts on record a quantity of 9 MTs. of polypropylene wa....

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....was availed by the appellants on receipt of the first consignment of 2 MTs. It was only subsequently when the another consignment of 7 MTs. was procured by them from M/s. Gaura Enterprises, they received the gate-pass covering the consignment in question duly endorsed in favour of the appellants in respect of the entire quantity of 9 MTs., that is, 2 MTs. purchased by the appellants earlier and th....

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....s decisions of the Tribunal. He drew the attention of the Bench to the Tribunal's decision in the case of C.C.E., Bhubaneswar v. M/s. Multilayer Composites Pvt. Ltd. [1994 (69) E.L.T. 575 (ERB)] and submitted that the facts in the instant case are at par with the facts in the above referred judgment of the Tribunal and it was held by the Tribunal that full quantity covered by the gate-passes havin....

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....s, he prayed for allowing the appeal. Learned JDR, Shri V.R. Sethi reiterated the reasoning and findings of the lower authorities on the merits of the goods. As regards the penalty, learned JDR argued that the same is imposable in the facts and circumstances of the case inasmuch as the appellants have not followed the due procedure of obtaining subsidiary gate-passes in respect of the above quanti....