2009 (1) TMI 554

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.... for the Appellant. Shri S.R. Prasad, SDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. -  The appellants have been denied the Modvat credit of Rs. 25.79 Lakh approx. availed by them on the basis of three supplementary invoices issued by their own sister unit located at Wasim (Maharashtra). The said unit, situated at Wasim was engaged in the manufacture of collapseab....

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..... On the basis of the said supplementary invoices, their sister concern availed the Modvat credit on the differential duty paid by the manufacturing unit. 2. Ld. Advocate appearing for the appellants submits that proceedings for denial of such credit were initiated against all their sister concerns located at Goa and Wada. However, such proceedings were dropped by the original adjudicating....

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....other two matters of their sister concern, the present impugned order cannot be sustained on this short ground itself. In any case, submits the ld. Advocate that there is no suppression at the manufacturers end, inasmuch as the assessable value was being adopted by them on the legal understanding and with the knowledge of the jurisdictional Central Excise Authorities. It was on bona fide belief of....

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.... audit and it is not a case of suo motu revision of assessable value. 6. After considering the submissions made by both the sides, we find that the duty paid by the manufacturing unit was admittedly available as credit to its sister unit to whom the goods were being cleared. In this scenario, there could be no motive on the part of manufacturing unit to undervalue the goods and to pay less....