2014 (9) TMI 965

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....' have two units at (a) Ratnagiri and (b) Chinchwad. This, appeal pertains to credit taken by the appellant's unit at Chinchwad. The appellant's factory at Ratnagiri cleared PVC resins on payment of appropriate rate of duty to M/s. Associated Capsules Ltd. and M/s. Klockner Supreme Pentaplast Ltd. As the goods were found to be defective, the above customers returned the goods to the appellant's unit at Ratnagiri on payment of duty, under their invoices, under Rule 57F(1)(ii). It is further stated that the appellants had duly followed the procedure under Rule 173H. It is also further pointed out that the appellant's unit at Ratnagiri undertook only reprocessing/reconditioning, the appellant could not take Modvat credit of duty paid on the in....

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....Rules, 1944. 2.2 The appellant contested the show cause notice by filing reply stating that they have correctly followed the procedure prescribed by Trade Notice No. 304/1989 issued by Pune Commissionerate and essential provisions prescribed under Rule 47A vide Trade Notice No. 47/86. Vide Order-in-Original dated 15-2-1999, the proposed demand was confirmed and penalty of Rs. 4000/- was imposed under Rule 173Q of Central Excise Rules, 1944 on the finding that the Ratnagiri unit have not followed the proper procedure and as such it is not forthcoming as to which duty the credit has been availed and whether the credit has been availed of the duty paid by the original consignee at Chinchwad unit or at the Ratnagiri unit also. 2.3 B....

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....Klockner Supreme Pentaplast Ltd. and also the two invoices dated 13-4-1997 and 4-12-1996 by which the rejected goods were returned on payment of duty and these invoices also contained reference of the invoice no. of the appellants and further draws attention to the declaration filed with the department, information in Form D-3 under Rule 173H, categorically declaring thereunder, mentioned excisable goods have been received back in the factory premises being goods cleared earlier on return of the same to factory under Rule 173H. Further, declaration that the said goods received are identifiable with the description given in the referred invoices and that the said goods have been received and entered in the stock register and also to the cert....