2005 (5) TMI 460

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.... the Respondent. [Order]. - This appeal has been preferred by the said partner of the firm challenging the imposition of penalty on him under Rule 209A. The Appellate Commissioner upheld the Order-in-Original by which Modvat credit amounting to Rs. 1,08,170/- was disallowed and a penalty of Rs. 1,08,170/- was imposed on the assessee under Rule 57U and a penalty of Rs. 10,000/- was also impos....

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....ysical stock verification on 23-2-2001 in contravention of Rule 57AE and Rule 173G of the Central Excise Rules. The credit of Rs. 1,08,170/-, therefore, according to the Department was irregular under Rule 57AH of the Rules read with proviso to Section 1A(1) of the Act. 4. In the Order-in-Original, it was found from the material on record that the date of installation as intimated to the Depart....

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.... full amount of Modvat credit. 5.The assessee did not contest the shortage of inputs found at the time of physical stock verification as noted in paragraph 12 of the Order-in-Original; but the shortage was attributed by the assessee to handling, transport loss inside the factory, and tendency of evaporation of the inputs. This explanation was not found to be convincing and it was noted that the....