2005 (4) TMI 564

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....t Grinder) supplied to M/s. EPUD and were also availing Modvat credit on the inputs supplied by them. M/s. EPUD were purchasing various inputs of Wet Grinder from M/s. Metafab and M/s. B.K.N. Metafab Pvt. Ltd., who were supplying the said goods to the job workers in the account of M/ s. EPUD. 2. A case was booked against M/s. Metafab, who were found, by the Department, to have resorted to fragmentation of units with intent to claim SSI exemption under Notification No. 1/93-CE. It was adjudicated by the Commissioner of Central Excise, Coimbatore, who clubbed the clearances of the various units of M/s. Metafab and confirmed a demand of duty of ₹ 18,70,451/- against M/s. Metafab on the goods cleared in excess of the maximum limit of agg....

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.... input-suppliers was not available to the manufacturers of final product on account of the fact that the payment of differential duty by the input-manufacturers was consequential to detection of their fraudulent evasion of duty. It was also pointed out that the job-workers had taken the Modvat credit in question without filing the necessary declaration under Rule 57G. The declarations were filed much later. The delay was not condoned by. the Assistant Commissioner for a valid reason, which was that the payment of differential duty on the inputs by the input-manufacturers was consequent on detection of fraudulent evasion of duty. Ld. Counsel submitted that such a ground for denial of Modvat credit was not valid for any period prior to 0 1.03....