2001 (9) TMI 870

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.... depots to their registered dealers viz. M/s Suman Steels under cover of invoices issued by the depots as registered dealers. M/s Suman Steels, in turn sold a part of the goods under cover of similar invoices to M/s Kwality Steels who were also registered dealers. The invoices issued by SAIL depots, were marked as duplicate instead of 'original'. M/s. Suman Steels and M/s Kwality Steels took Modvat credit of the duty paid on the goods and passed the same on to their respective purchasers. The department framed a case against SAIL, Suman Steels and Kwality Steels and issued show-cause notices to them proposing to impose penalties for alleged violation of Central Excise Rules governing issue of invoices. In adjudication of the show cause noti....

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....at, had the lower appellate authority applied its mind to SAIL's certificates produced by the parties, it would have certainly found that the invoices issued by SAIL depot were proper and valid duty-paying documents for the purpose of taking Modvat credit. He submits that there was no warrant for imposition of any penalty. Ld. counsel has, therefore, prayed for allowing the appeal. Ld. DR has reiterated the findings of the Commissioner (Appeals). 4. I have examined the submissions. I find that, insofar as the case of M/s Kwality Steels is concerned there is absolutely no justification for the lower authorities to deny the Modvat credits and impose penalty. They had taken the credits on valid documents issued by their suppliers viz. ....