2002 (4) TMI 779

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Shri Mewa Singh, SDR, for the Respondent. [Order per : G.R. Sharma, Member (T)]. - This is an appeal against disallowance of Modvat credit and imposition of penalty. 2. The facts of the case briefly stated are that the appellants are engaged in the manufacture of EPS Moulded products for packing, EPS Sheet, EPS Block and EPS parts of Head Gear. Scrutiny of the Modvat documents reveal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... case for the appellants Shri K.L. Handa, learned Consultant submits that it was a mistake on the part of the clerk who was maintaining the documents and excise records. He submits that the clerk to create mischief changed the dates on the invoices. He submits that there was no dispute about receipt of the goods; that the duty paid character of the goods and use of inputs in the manufacture of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of manipulation of the records; that the clearance has been taken on the finished goods when there was no sufficient balance to pay the duty amount. He submits that by manipulating invoices in respect of the inputs the appellants took credit on the date when the goods have not been received in the factory. He submits that law is very clear in this respect which says that no credit shall be taken ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....able. The inputs were duty paid. Inputs were used in the manufacture of final product and the inputs were received in the factory whereas we consider the disallowance of Modvat credit was too harsh we hold that for manipulation of records penalty is imposable. Looking to the facts of the case we hold that disallowance of Modvat is too harsh and therefore, the order disallowing Modvat credit is set....