TaxTMI 
TaxTMI 
2000 (5) TMI 263
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....Brief facts of case are that on surprise check by Division II Officers of Central Excise Vadodara, in the applicants factory on 25-8-94, it was found there was a shortage of inputs Potassium Hydroxide of 12075 kgs. and Citric Acid of 7450 kgs. on verification of actual physical stock and entry in RG23A Part I statutory register, which were seized under the Panchanama, along with other records. Senior Manager Shri RS Jamadar was enquired and statement under Section 14 of Central Excise Act was recorded who could not satisfactorily explain the same. Modvat credit of Rs. 3,07,187/- was already availed by applicant. Removal was not entered in the statutory register RG 23A Part II by a debit entry and no invoices or challan was issued. As per th....
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....73Q(1) (bb) of Central Excise Rules. Applicant replied it on 20-11-97. After hearing the applicant in personal hearing, Additional Commissioner, Vadodara confirmed the demand and imposed penalty of Rs. 40,000/- on the applicant. Appeal against it was dismissed by the Commissioner (Appeals), Vadodara under the impugned order which is resulted in this appeal accompanied by stay application under consideration . 2.  The grounds on which stay is sought are that applicant a SSI unit avails Modvat credit, after filing of necessary declaration under Rule 57G of Central Excise Rules on the duty paid input received to manufacture various categories of organic and inorganic chemical. In support of the stay application, learned Counsel for app....
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.... to store the inputs outside the factory, in a separate godown, from the department before the visit of officers. Para 5 of Vadilal's case under Rule 57G is relevant. Admittedly goods was not received in the factory, user in manufacture under Rule 57A(4) and (8) does arise. The bar of limitation raised by the applicant is discussed in detail in para 5 of the order by Additional Commissioner knowledge of department is not relevant. There is no prima facie case on any count. Statement of Jamadar Senior Manager is clear. In reply, it is submitted, RT12 returns are regularly filed, no doubt for storage of goods. Jamadar Senior Manager on the very next day of recording statement has informed the department by letter giving all facts. Commissione....
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....r cross examination of panchas is not at all considered by the lower authorities. So also the letters of applicant referred above. The Commissioner (Appeals) has also not discussed and given findings on the limitation aspect of show cause notice, though narrated the arguments in page 3 of the order at unnumbered para 4, order-in-original is passed 18-12-1997 and the impugned order is dated 21-7-1999. The Collector of Central Excise, Vadodara had permitted the applicant to store the inputs received in godown outside the factory, as per the letter of Assistant Collector dated 30-9-1997. The applicant's case is Assistant Commissioner was informed telephonically, and confirmed by a letter on the same day of visit of officers to the factory abou....