2009 (11) TMI 725

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....were sent to originating Range officer for verification, who reported that out of 76 input gate passes, 26 input gate passes were found to be fictitious. The appellants Range Superintendent, therefore issued a demand notice to the appellants to reverse the Modvat Credit availed on the said 26 input gate passes and the same was complied by the appellants and debited Rs. 2,37,908/- in PLA on 3-8-94 subsequently a show cause notice dated 16-2-1996 was issued by the Departments to impose penalty and after due adjudication process, Order-in-Original No. 42/99, dated 15-10-99 was issued by the Joint Commissioner imposing a penalty of Rs. 50,000/- on the appellants. Aggrieved by the above order, the appellants filed an appeal before the Commission....

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....ded and the penalty imposed is to be set aside. 4.  Learned JDR reiterates the findings of the Adjudicating Authority. 5.  I have heard both sides and perused the records. The issue involved in this case is regarding the imposition of penalty of Rs. 12,000/- (Rupees Twelve thousand only) on the appellant under the provisions of Rule 173Q of the Central Excise Rules, 1944. The facts are not much disputed. The appellant availed Modvat credit on inputs received by them from M/s. Wheels India Ltd. on 76 GPs. The said GPs were sent to originating Range officer for verification, who reported that out of 76 GPs, 26 GPs were found to be fictitious and the credit availed on such GPs needs to be reversed. Relying on such verification,....