Customs, Excise and Gold Tribunal - Calcutta
Moti Biscuit Private Ltd. vs Commissioner Of Central Excise, Bolpur on 19 November, 2001
JUDGMENT
K.K. Bhatia
1. The appellants availed modvat credit of Rs. 1,03,726/- during the period from April to June, 1994 on the strength of endorsed invoices. However, vide Notification No. 4/94 dated 1.3.94, the availment of credit on the endorsed duty paying documents and subsidiary gate pass system was dispensed with. Accordingly the proceedings were initiated against the appellants and the Assistant Commissioner of Central Excise, Durgapur vide his order dated 20.8.99 disallowed them the modvat credit totally amounting to Rs. 96,113/-. He also imposed a penalty of Rs. 10,000/- on the party.
2. The party filed an appeal but the same stood rejected vide order dated 22.2.2001 passed by the Commissioner (Appeals), Kolkata.
3. This is the second stage appeal by the party. I have heard Shri Debasish Ghosh, Consultant for the appellants and Shri A.K. Mondal, JDR for the respondents. I have considered the submissions made before me. The issue relating to the availment of modvat credit on the endorsed duty paying document after 1.4.94 stands settled against the assessees vide the Larger Bench decision of the CEGAT in Balmer Lawrie - 2000 (36) RLT 666 (CEGAT-LB). Learned Consultant for the appellant does not dispute that the case of his client is fully covered against him by the ratio of this decision. He however seeks relief for the penalty imposed on them. It is observed from the facts on record that the appellants had availed modvat credit during the months of April to June, 1994 on the endorsed invoices when the bar of availing the modvat credit on such endorsed documents had just been brought into force w.e.f. 1.4.94. Therefore, there appears to be a bona fide mistake on their part which in my view does not call for imposition of a penalty. Accordingly the penalty of Rs. 10,000/- imposed on the appellants, is set aside. But for this modification the appeal otherwise fails and the same is accordingly rejected.
(Dictated & announced in Court)