2015 (9) TMI 771

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....al question of law:- "Whether Modvat Credit can be allowed to the buyers based on the invoices of the suppliers showing particulars of duty, though in reality no duty was admittedly paid on the goods by the suppliers"? 2. Even though the 1st respondent-assessee has been noticed and his name also printed in the cause list, there is no appearance for them either in person or through counsel. 3. The first respondent/assessee is manufacturers of Pencillin G Potassium First Crystals and 6 APA falling under Chapter Sub Heading 2941.10 and are availing the facility of Modvat credit for both Inputs and Capital Goods. 4. The assessee had availed Modvat credit to the tune of Rs. 2,47,406/- on the goods under 36 invoices issued by M/....

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....ted an opportunity of hearing on 15.09.2000 and again, the assessee filed a letter dated 26.09.2000 and submitted that they had checked up with M/s.Indian Oil Corporation Limited, Chennai and that they had understood that Indian Oil Corporation Limited had shown excise duty on the assessable value of Furnace Oil and the same was collected by them; that however, the duty had not been paid by them in their P.L.A., and that therefore they had expunged the said credit of Rs. 2,47,406/- as per the details given in Show Cause Notice No.26/99 dated 06.05.99 vide their Part II Serial No.980 in RG23A and requested to drop the proceedings. 7. However, the Adjudicating Authority passed the order dated 27.10.2000 confirming the contravention alleged....

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....ppeal. 10. Challenging the same, the Revenue is before us by way of this appeal. 11. We have heard Mr.V.Sundareswaran, the learned Standing Central Government Standing Counsel appearing for the Department. 12. During the course of hearing, the learned Standing Counsel appearing for the Department fairly submitted that the CESTAT failed to take note of the fact that there is an admission by the first respondent/assessee in their letter dated 26.09.2000 that on verification, it has been found that no duty had been paid by the M/s.Indian Oil Corporation Limited and they voluntarily reversed the Modvat credit of Rs. 2,47,406/- as per the details given in Show Cause Notice. 13. We have perused the Order-in-Original, dated 27.10.2000,....