2023 (5) TMI 438

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....e Tribunal referred the matter to this Court to decide the question whether the quantum was justified in allowing appeal without ascertaining the factual position for actual utilisation of input appropriate to be charged to the electric induction furnace." Heard learned counsel on either side. The Tribunal, in our opinion, has examined the factual position in a detailed manner and moved on to consider as to whether the demand was barred by limitation. The show cause notice alleging wrongful abatement of MODVAT credit was issued on 3.4.1995 for the period from 1.3.1990 to 31.3.1994 on the ground that MODVAT credit was availed in an inappropriate manner. The appellant contended that the credit was availed after filing proper declaration and....

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.... stand taken by the assessee before it and it was pointed out that in the order passed by the Commissioner of Central Excise, Calcutta-I, it has been observed that defacing the document does not mean that the concerned officer has verified the document and the main purpose of defacing is to prevent the same document for being used for availament of MODVAT credit. Thereafter, the Tribunal examined the purpose for which defacing of document is done and pointed out that it is an empty formality to be done by Central Excise Officers having jurisdiction over the assessee. More particularly, at the time of defacement the genuineness of the duty paying document is examined by the authorities and it is only thereafter the document is defaced. The r....