2007 (9) TMI 111

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....ent case is whether the appellants had correctly availed the modvat credit on the basis of duty paying documents. I find that, the disputed issue pertained to months of December, 1997, January, 1999 and December, 1999. There were no charges against the appellants during these periods about (i) non-filing of Monthly Returns along with copies of RG23A Part I and II and (ii) even non-submission of invoices on the basis of which the appellants had availed the credit. Thus, it has to be concluded that, the monthly re turns were timely submitted by the appellants along with modvatable invoices and those returns were properly scrutinized by the jurisdictional Range Officers and the relevant duty paying invoices can be assumed to have been dul....

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....uded that the credit was availed under valid duty payment documents. Consequently the demand/penalty cannot be sustained and is liable to be set aside. The ratio of law laid down by Tribunal (supra) is squarely applicable in the present case. The lower authority has clearly failed to appreciate these facts or records and patently erred in denying the credit. He wrongly confirmed the demand along with interest hence, it is liable to be set aside. As regards plea of limitation, I find that the periods involved were December, 1997, January, 1999 and December, 1999. The monthly returns for these months were filed in time. In such a case, when the department was aware of all the facts about availment of modvat credit during these respective mont....