2008 (6) TMI 440

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....ily attaching certain accessories of the similar old machine. It is their contention that they also took trial production of 973 machined components by using the said imported Maxi Press. A certificate to this effect was issued by the General Manager (Works) of their factory. They therefore took modvat credit of Rs. 10,97,150/- in respect of countervailing duty paid on the said Maxi Press. As per their submission, it was found that all the diaphragms of the machine are completely cut circumferencialy. The appellants stated that they have exchanged extensive correspondence with the supplier of the machine for replacement of the machine/parts. It is their contention that since the machine was commissioned on 23-4-1999 inasmuch as they have ta....

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....ot have been denied. The adjudicating authority ignored their submissions that the term 'installation' carries a different technical meaning than the term 'commissioning'. In any case the credit should have been restored after the machine has already been installed. They referred to the several decisions of the Tribunal in this regard. It was submitted that once receipt of the machine in their premises is not disputed, nor the nature of its duty paid character and duty paying documents then there was no case for imposition of penalty under Rule 57U(6) as they were under the bona fide impression that installation on trial basis would be sufficient compliance of Rule 57Q(2)(ii). 4. We have considered the submissions. We find that the ....