TaxTMI 
TaxTMI 
2008 (1) TMI 293
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....l is correct in holding that Commissioner (Appeals) has traversed beyond the show cause notice when the certificate required under Notification 58/97-CE (NT) dated 30.8.97 required duty payment and the same was not found discharged? 2.Whether the manufacturer of final products is entitled to deemed credit, under Notification 58/97-CE dated 30.8.97 when the manufacturer-supplier of inputs has not paid Central Excise duty and given a wrong certificate on the body of invoices about duty discharged under Rule 96ZP of Central Excise Rules, 1944?" 2. The brief facts of the case are that the respondent M/s Namdev Pipes Ltd., Nabha Road, Bhawanigarh is registered with the Central Excise Range, Sangrur under the Central Excise Act, 1944 (herei....
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....98 to 31-12-98 on which the respondent had availed deemed Modvat Credit revealed that many of the invoices did not contain the requisite declaration at the time of clearance of said inputs by the manufacturer that appropriate duty has been paid on such inputs under Section 3A of the said Act and the few invoices contained that the duty is to be discharged under the said Rules. 4. A show cause notice was served on the respondent for recovery of wrongly availed modvat credit of Rs.151703/- under Rule 57 I of Central Excise Rules, 1944 along with interest under Section 11 AA of Central Excise Act,1944 read with Rule 57 1(3) of the Rules and for imposition of Personal Penalty on the respondent under Rule 173 Q for contravening the provisions....
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....eceived under the cover of an invoice declaring that the appropriate duty of excise has been paid on such inputs under provisions of Section 3A of the Act. The invoice on the basis of which deemed Modvat Credit has been taken does not indicate that appropriate duty of excise has been paid under Section 3A of the Act. Even the certificate issued by the jurisdictional Range Superintendent of the manufacturer of inputs submitted before me does not indicate that the manufacturer of inputs has paid appropriate duty of excise under Section 3A of the Act. It indicates that the party is working under Section 3 A and they have deposited duty amounting to Rs.319436/- during the month Sep. 1998 against duty liability of Rs.638872/- fixed for the month....
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....ping in view the above discussions and findings, I pass the following order :- "ORDER I confirm the demand for Rs.38,153/- (Rupees thirty eight thousand one hundred fifty three only) against the Notices under Rule 57-1Central Excise Rules, 1944. I impose personal penalty of Rs.4000/- (Rupees Four thousand only) upon the notices under Rule 173 Q of the Rules. I also order the noticee to pay interest in terms of Section 11AA of the Central Excise Act, 1944 read with erstwhile sub- Rule (3) of Rule 57-I of Central Excise Rules,1944. I allow Modvat Credit and vacate the demand for Rs.113550/- raised against the Noticee." 8. Against the order dated 29.5.2000 passed by the adjudicating authority, the respondent filed an appeal b....
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....ile allowing the appeal of the assessee/respondent, the Tribunal vide its order dated 24.8.2006 found that the Commissioner (Appeals) had rejected the appeal of the assessee on totally different grounds than the one which has been alleged in the show cause notice and therefore, the same is liable to be set aside. Hence this appeal by the Revenue. 10. The crux of the argument raised by the Revenue in the grounds of appeal is that the credit which has been denied to the assessee on the ground that the invoices on which deemed credit has been availed, do not bear the declaration "appropriate duty under Rule 96 ZP/Section 3A has been discharged." It is his submission that the invoice on which the credit sought to be denied bears only the dec....