2007 (11) TMI 184

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....)  Whether the respondent was entitled to modvatcredit of S.S. Sheets as Scrap after receipt of required width from the supplier? (ii)  Whether the respondent is entitled to benefit of Rule 57-D of clearance of modvatable inputs?.   90 of 2007 (iii)  Whether the respondent is entitled to modvat credit on S.S. Sheets which were received as per their requirement and were removed as scrap without being used as inputs in the manufacture offinal product? (iv) Whether the modvat credit of Rs. 36,343/- and Rs.476/- on inputs found short is deniable and recoverable under Rule 57(1) of the Central Excise Rules, 1944? (v) Whether the Tribunal was justified in reducing the penalty while upholding the majority of the ....

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....ing the order of the Adjudicating Authority. The assessee-company then filed further appeal before the Tribunal, which has been allowed vide order dated 6.11.2006, subject matter of present appeal. While referring to the statement of the authorized signatory of the assessee-company, recorded under Section 14 of the Act, the Tribunal has observed as under:- "The lower authorities have not produced any contrary evidence that would indicate that cleared SS Sheet were not scrap. The authorized signatory categorically stated that these sheets were rejected after shearing i.e. after the same were issued and put to use in the shop floor. If that be so, then the demand of duty on this count is unsustainable in as much that is settled law that th....

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....tent it confirms the demand of duty on short found inputs is set aside.   "6". It is seen from the orders of the lower authorities that the penalty imposed on the appellant is a consolidated one for all the infractions. Since, I have allowed the appeal of the appellant partly as indicated in the above paragraphs, the penalty imposed on the appellant also requires reconsideration. In the facts and circumstances of the case, the penalty imposed on the appellant is reduced to Rs. 20,000/-." 5. After hearing learned counsel for the appellant-revenue and perusing various orders placed on record, we are of the considered view that the aforementioned findings recorded by the Tribunal are unassailable and same are not open to any challen....