2002 (5) TMI 726

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.... Respondent. [Order]. -  The appellants manufacture iron and steel products falling under Chapter 72. They availed the deemed Modvat credit on the inputs material received by them from the manufacturers who were working under the compounded levy scheme under the provisions of Section 3A of Central Excise Act, 1944. The deemed credit is availed under the Notification No. 58/97-C.E. (N.T.), d....

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....penalty of Rs. 50% of the duty confirmed on them. 2. The party filed an appeal. The Commissioner (Appeals), Chandigarh, vide his order dt. 11-5-2001 but for reducing the penalty to 20% of the amount of duty confirmed on the appellants, otherwise rejected the appeal of the party. The Commissioner (Appeals) in his order observed that the appellants have not submitted any certificate of the Ran....

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....-in-original dt. 1-5-95 itself is passed in respect of about sixty assessees subjecting each of them to the denial of Modvat credit and uniform penalty of 50% of the disallowed credit each. In my view, in the absence of findings recorded in respect of each noticee, the order is completely subjective, arbitrary and in violation of principles of natural justice. Without being sanguine of the full fa....