2002 (2) TMI 238

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....(T)]. - The facts of the case in brief are that the appellants manufacture communication equipments and parts thereof falling under Chapter sub-heading Nos. 8517.00 and 8529.00. They are also availing the facility of the Modvat credit on the inputs used in the manufacture of their final products. On the visit of the Central Excise Officers to their unit in June, 1997, it was noticed that 8199 mete....

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....on them under Rule 57-I(4) of the Central Excise Rules, 1944 and also directed the recovery of the interest of Rs. 5,75,072/- under Rule 57-I(5) of the Central Excise Rules, 1944. 2. The party filed an appeal but the same is rejected by the order dated 21-8-2001 of the Commissioner (Appeals), Chandigarh. 3. This appeal is against the impugned order of the Commissioner (Appeals). We have hear....

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....It is stated that at the time of taking of the credit there was no violation of any of the provisions of the Modvat rules and therefore imposition of the penalty equal to the amount of the credit levying interest under the provision of Rule 57-I(5) of the Central Excise Rules, 1944 is not valid. We have considered these submissions. As already stated above, the appellants are not contesting the re....