TaxTMI 
TaxTMI 
2006 (7) TMI 489
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - The respondents herein manufactured excisable goods falling under Chapter 27 of the Schedule to the CETA, 1985. Show cause notices were issued to them for recovery of duty of Rs. 4,89,47,305/- and Rs. 2,12,75,458/- on the ground that they had availed excess (additional) Modvat credit of 5% in addition to the regular Modvat c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Modvat credit to 10% was not applicable to them as the oil companies recovered 5% of the excise duty on price administered products from the pool account without charging to the customers. He, therefore, held that Modvat credit was taken at the rate of 15% by the respondents under the bona fide belief that Notification No. 14/97-C.E. was not applicable to special cut Naptha which was outside Admin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se. The interim order of the Hon'ble Delhi High Court by which the Court directed that the petitioners/respondents herein shall keep frozen and unutilized Modvat credit, is dated 3-12-97. Therefore, this bears out that the credit had not been taken by the respondents prior to the passing of the order of the Hon'ble Delhi High Court. Further, the amount has remained frozen and unutilized under High....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... while in the present case, the respondents reversed the credit even prior to the determination of the amount by the order of the Dy. Commissioner in November, 1999. Sub-clauses (4) and (5) of Rule 57-I, providing for imposition of penalty and interest in cases where the credit of duty has been taken on account of fraud wilful mis-statement, collusion or suppression of facts, or contravention of a....