2006 (9) TMI 83

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.... and availing Modvat credit on the various inputs and machines and parts as capital goods under erstwhile Rule 57A and Rule 57Q of Central Excise Rules, 1944 and utilized the same for the purpose of paying Central Excise duty at the time of clearances. 3. On receipt of information from Deputy Commissioner, Central Excise & Customs, Mulund Division, Mumbai-II that M/s. Rahul Metals, a registered dealer dealing in the sale of C.R. Sheets, C.R. Coils, etc. had been reported to be passing on Modvat credit to the customers by fraudulent means i.e. by not sending/dispatching the goods i.e. C.R. Coils and C.R. Sheets to the customers but issuing only invoices under Rule 57G and thereby helping its customers to avail Modvat credit. The appellant....

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....el for the appellants has raised various contentions with the relevant case law which have already been considered by both the authorities below. They need not be referred them again. The main contention of the learned counsel for the appellants is that cross examination of Shri Ajay Kumar Ramasharan Singh, Accountant of M/s. Rahul Metals has not been granted inspite of their repeated request. According to him, he is the main witness and in the absence of his cross examination, the statement given by the said person should not have been looked into. In support of this contention, he cites and relies upon the decision of the Apex Court in the case of Lakshman Exports Limited v. CCE -2002 (143) E.L.T. 21 (S.C.). 5. The learned JDR appearin....

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....ere being confiscation of the goods. 7. The learned Counsel for the appellants has placed reliance on the decision of the Apex Court in the case of CCE, Jaipur v. Raghuvar (India) Ltd. - 2000 (118) E.L.T. 311 (S.C.). I have gone through the Apex Court's decision. In that case the Modvat credit was availed even prior to filing the declaration under Rule 57G and the same was sought to be recovered by issuing letters. Thereafter show cause notice was issued. The assessee took a plea that the show cause notice was time barred. The other aspect is that Rule 57-I was amended on 6-10-1998, therefore, it has been observed that the provisions of Section 11A of the Act would have no application to any action taken under Rule 57-I prior to its amen....