2002 (11) TMI 422

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....r the Appellant. Ms. K.A. Mishra, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. -  The appellants are a manufacturer of Cement. They are entitled to take duty paid on capital goods installed in their factory by way of Modvat credit. When such capital goods outlive their utility they are scrapped and removed. The iron and steel (waste and scrap) so obtained in the sc....

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....t is their submission that the proviso to Section 11A applied only to cases of wilful mis-declaration and suppression of facts etc. with intent to evade duty. They contend that allegation of intent to evade duty could not be raised in the present case inasmuch as the transactions were revenue neutral. They point out that in the event of payment of duty on the scrap removed from the cement factory,....

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....so no requirement to resort to any mal practice since any duty paid on the removed scrap could, with no loss of time, be taken as credit in the Foundry Division. 3. As against the aforesaid submissions of the appellant, the learned SDR has pointed out that the removal of capital goods was not disclosed to Central Excise authorities and therefore, the Commissioner was right in holding that ....