2007 (1) TMI 64

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....ut payment of duty for the period 1995-96 to 1997-98 - Rs. 1,81,665/- (ii) duty on scrap cleared without payment of duty during the period April to September 98 - Rs. 1,72,612/- (iii) Disallowance of Modvat Credit on CRCA Sheets/Coils to the extent of 20% less quantity of material received - Rs. 8,94,542/- and (iv) Modvat credit fraudulently availed on CRCA Sheets/Coils purchased from M/s. Kunal Corporation and diverted into the market during the period April 98 to June 98 - Rs. 10,24,323/- and during the period July 98 to November 98 - Rs. 1,20,519/-. 2. We have heard both sides. 3. We find that the duty demand on scrap cleared during the period April 98 to November 98 is based not only upon the statements of Shri Paresh M. Shah, Par....

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....d accordingly, set aside the demand of Rs. 1,81,665/- 4. As regards the denial of Modvat credit, the plea of the appellants is that the provisions of Rule 57-I, which have been invoked for the purpose of recovery of credit not being in force at the time of issue of show cause notice i.e. 19- 4-2000, the credit cannot be recovered under Rule 57-I in the light of the Tribunal's order in the case of Sunrise Structurals & Engineering Ltd., Final Order No. A-711 to 722/WZB/2004-C-II dated 27-8-2004. 5. We have gone through the above decision. The Tribunal has analysed the relevant provisions and held that on the date of issue of show cause notice, Modvat provisions were not in existence in the statute, having been substituted by the Cenvat....