2004 (9) TMI 445

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....tches and inorganic/pigment preparations and were availing the benefit of Modvat credit in respect of inputs used in the manufacture of final product. A SCN was issued for denial of credit of Rs. 1,55,01,539/- on the ground that the credit was availed without receipt of the inputs in the factory and some inputs were cleared as such without payment of duty. The appellant filed reply and thereafter adjudicating authority confirmed the demand of Rs. 52,00,000/- and imposed penalties on the ground that the appellant have been showing excess consumption on costly inputs in the manufacture of final product to avail higher Modvat credit in respect of the duty paid on these inputs. 3. The contention of the appellant is that the SCN was issu....

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....y in the impugned order in Para 33 framed two issues : (i)       Whether the inputs covered under the invoices, on which the receipts of the goods was marked differently by the employees had actually been received and used in the manufacture of the final product ? (ii)     Whether the Private Stock Register resumed from the factory premises is genuine and whether it contained the actual stock position of the inputs? 7. The adjudicating authority in Para 53 of the impugned order held that the Department has neither put forth any material nor any other evidence to rebut the submissions made by the party in the absence of which I have no alternative but to accept the argument of t....