2000 (12) TMI 389

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lant. Smt. Reena Arya, DR, for the Respondent. [Order]. -  On hearing Shri S.P. Sheth for the applicants and Smt. Reena Arya for the Revenue, the appeal itself was taken up for disposal. 2. M/s. International Solvent & Chemicals Co. are the agents of M/s. NOCIL, registered as 'Dealers' empowered to issue Modvatable invoices in terms of Rule 174 read with Rule 57GG of the Cent....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t transferred thereby amounted to Rs. 31,147/-. This credit was sought to be reversed by a notice under Rule 57-I of the Rules and levy of penalty on them under Rule 173Q of the Rules was also alleged. The Dy. Commissioner passed orders confirming the duty and imposing penalty of Rs. 10,000/-. The dealers then filed an appeal. The Commissioner held as follows : - "The question thereafter is whe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er under Rule 174 read with Rule 57GG of Central Excise Rules, will not be covered under the said Rule 57-I ibid, for recovery of irregular credit. The liability imposed on the appellants on this account is therefore set aside". Hence the present appeal. 3. The Ld. Commissioner is quite correct in his interpretation of Rule 57-I which does not permit recovery of Modvat credit wrongly ta....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s prescribed under Rule 57G(6) for regularisation of the activity. The rule as it then stood did not make the satisfaction of the Assistant Commissioner mandatory. There is nothing on record to show whether the concerned officers had made any verification of the claims as to the physical receipt of the goods. Therefore it could not be held that the dealer had taken impermissible credit nor can it ....