2004 (5) TMI 183

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....s issued No. V/Adj (15/Seiz) 48/98/M-VII, dated 18-8-1998 to 17 notices therein to show cause as to why - (i) Modvat credit of Rs 1,26,17,981/- wrongly availed by M/s Shaper Chemicals Ltd. (hereinafter referred to as 'Shaper') on goods not received in the factory during the period 1995 to September 1997 should not be disallowed and recovered under Rule 57-I(1) of the Central Excise Rules, 1944. (ii) Amounts of Rs. 84,9621 & Rs. 20.00 lakhs paid by them in RG 23A and TR 6 challans should not be confirmed. (iii) Central Excise duty of Rs. 24,5666/- on raw material found short should not be confirmed. (iv) Excess stock of raw material and finished goods not be ordered to be confiscated. (v) ....

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....ty on raw material found short as per Annexure C and appropriation of that amount already paid. (iii) Confiscation of excess stock of raw material valued at Rs. 1,77,974/- and finished goods valued at Rs. 3,00,700/- as per Annexures D & E to the Notice and to be redeemed on payment of fine of Rs. 25,000/-. (iv) Penalty of Rs. 1,26,17,981/- on Shaper under Rule 57-I(4) read with Section 11AC was imposed along with penalty of Rs. 20.00 lakhs under Rule 173Q read with Rules 210 and 226 and interest under Section 11AB was demanded in respect of Modvat disallowed. (v) Penalties were imposed on the following under Rule 209A of the Central Excise Rules, 1944 for the role in fraudulent availment of Modvat credit. The pers....

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....,250/- and appropriated of Rs. 8 lakhs paid. Confirmed duty demand of Rs. 1,55,409/- shortage raw material and Rs. 27,936/- on finished goods and duty on goods sent for reprocessing and not received back along with equivalent penalty of Rs. 23,05,250/- under Section 11AC read with Rule 57-I and penalty of Rs. 4 lakhs under Rule 173Q and Rule 226 with penalty under Rule 209A for fraudulently availing of Modvat credit on Shri Pradeep Shetye, Shri K.N, Nikorawala, Managing Director of Shaper, Shri R.R. Umbre, Production Manager of M/s. Pradeep Shetye Pvt. Ltd. Hence these appeals. 3. After hearing both sides and considering the materials on record, it is found : (a) Since there are no goods to be moving, as found by the ld. Comm....