TaxTMI 
TaxTMI 
1998 (5) TMI 113
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....e Asstt. Commissioner of Central Excise, Patna Division whereunder the Asstt. Commissioner disallowed Modvat credits both on inputs and capital goods amounting to (i) Rs. 2,18,18,924/- with imposition of penalty of Rs. 2,00,000/-; (ii) Rs. 1,91,58,152/- with imposition of penalty of Rs. 1,50,000/-; (iii) Rs. 1,11,36,385/- with imposition of penalty of Rs. 1,25,000/-; and (iv) Rs. 3,50,35,609/- and Rs. 2,94,72,402/- with imposition of penalty of Rs. 5,00,000/- respectively. The facts of the cases in brief are as below : 2. Re : File No. 129/PAT/97 The appellant availed Modvat credit on inputs and also on capital goods. Modvat credit so availed on `Toluns" were on the strength of the extra copy of invoices. The appellant also to....
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....um that : (i) By Notification No. 3/94-C.E., dated 1-3-1994 Chapter 27 was brought under Modvat Scheme. (ii) Invoice system was introduced replacing old GP.1 system with effect from 1-3-1994. (iii) Industry was not very clear about the introduced. Modvat system and also not clear about the quality of documents. (iv) To reduce hardship and manomaly CBE & C issued various circulars so that the litigation does not arise. (v) According to the Deptt. the goods received with invoice and Bill of Entry were not proper, but both the invoices were marked `Duplicate for Transporter' at the top and maintained colour code. Further, in both, Regd. Dealer/Assessee and Consignee's name and address were clearly printe....
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....ed against Bill of Entry was not correct. 5. The appellant also availed irregular credit of Rs. 37,41,560/- during the month of July and August, 1996 on capital goods violating the provisions of Notification No. 1/96-C.E., dated 31-1-1996 read with Trade Notice No. 2/1/NFCE/96, dated 31-1-1996, of Patna Commissionerate. The appellant also submitted reports/returns without filling some of the columns causing difficulties in physical verification of capital goods. They also not submitted D3 declarations of capital goods as required under Rule 57T(2) of Central Excise Rules, 1944. 6. In their defence reply in the Memorandum of Appeal, the appellant referred a judgment of the Commissioner of Central Excise, Patna Commissionerate....
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.... 33/33/94-CX. 8, dated 4-5-1994 which makes redundant all the circulars and the Board's letter under B-22/67/86-TRU, dated 13-4-1987. They further cited C.B.E. & C. Circular No. 202/36/96-CX, dated 26-4-1996 and the judgments reported in 1994 (72) E.L.T. 948 (Tri.); 1997 (90) E.L.T. 332 (Tri.); 1996 (88) E.L.T. 31 (Mad.); 1995 (75) E.L.T. 497 (S.C.); 1996 (87) E.L.T. 19 (S.C.) and the order passed by the Asstt. Commissioner of C.E., Patna under 6-C.E. (4/97), dated 31-5-1997. 9. Re : File No. 4/PAT/98 During the period from November, 1996 to January, 1997 the appellant took irregular Modvat credit and utilised the same amounting to Rs. 3,50,35,609/- in respect of inputs. They also did not deposit Rs. 2,94,72,402/- for removing `N....
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....rn Region, which has been endorsed wholly to the refinery at Barauni ? (b) Whether invoices for their inputs, which are rubber stamped "Duplicate Transporters Copy" should be accepted ? (c) Whether several clerical mistakes could be overlooked as typing error ? (d) Whether Raw Naptha and LSHS removed without payment of duty should be taken into consideration for allowing/dis-allowing input? (e) Whether Capital Inputs should be allowed without installation certificate? and (f) Whether credit should be given on photo copy of invoices? 14. With regards to import of SKO by M/s. IOC Ltd., I find that there is already a circular issued by Ministry in 1996, and also a Tribunal Decision in 1997 (96) E....