TaxTMI 
TaxTMI 
2000 (11) TMI 256
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....r the provisions of Modvat Scheme. During the period April to July, 1997, the appellants received in their premises 3160.00 kgs. of "Tonner" (a photographic chemical) from M/s. Transpek Marketing Ltd. valued at Rs. 17,05,840.00 for purpose of purification/rectification. The assessee complied with Rule 173H of the Rules and removed the same without payment of duty. Show cause notice dated 30-9-1997 was issued charging the appellants as follows : "Whereas it appears that during the scrutiny of records by the Central Excise Officers, it was noticed that the assessee have received product viz. "Tonner" falling under chapter sub-heading No. 3707.90 from Transpek Marketing Limited, 6th floor, Marble Arc, Race Course Circle, Vadodara, covering wi....
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....tated that by this act of contravention the appellants had violated the provisions of Rule 173Q of Central Excise Rules and invited my attention to the following sentence viz. they did not follow the procedure laid down under Central Excise Act and the Rules for clearance of the aforesaid goods. He states that the arguments of Shri Patel cannot be accepted. 6.I have considered the rival submissions. I have extracted the show cause notice. In the Order-in-Original at pages 66-67, it has been held by the Dy. Commissioner as follows : "I have gone through the provision of Rule 173H of the Central Excise Rules, 1944. I have also perused Transpek Marketing Ltd. , Vadodara's copy of Invoice No. 1, dated 11-4-1997 and No. 4, dated 01-5-1997 and ....
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....d to extend the period of one year for receipt of the duty paid goods for reprocessing/re-conditioning. In the circumstances, stated above, I come to the conclusion that the "Tonner" received by the assessee into the factory for reprocessing/reconditioning are not eligible at NIL rate of duty under Rule 173H of the Central Excise Rules, 1944 and the assessee have removed these quantity of 3160 kgs. Tonner without payment of Central Excise duty and thereby violated the provisions of the Central Excise Rules/Act, 1944." 7.The ground which he took was that the goods were initially removed in the month of November, 1995 and the goods have been received in the factory for reprocessing and reconditioning in the month of April, 1997. This has not....