M.C.Agarwal, J. - (1.) These two petitions by different petitioners arise in similar circumstances and are directed against a common order. The petitioners are represented by Sri A.P. Mathur, Advocate while the Respondents are represented by Sri Vikram Gulati, Advocate. Both of them have been heard.
(2.) The petitions are directed against an order passed by the Commissioner (Appeals), Customs and Central Excise, Ghaziabad whereby in exercise of powers under the proviso to Section 35-F, he partly waived the condition of the pre-deposit of adjudicated dues.
(3.) The petitioners had availed the Modvat Credit in respect of inputs which were used in the production of goods which during the process of production, were sent to other persons outside the factory for job work. This is permissible under Rule 57F of the Central Excise Rules, Sub-rule (11) whereof requires. that if inputs or partially processed inputs are not received back in the factory by the manufacturer of final products within a period of 60 days or the extended period as may be allowed by the Asstt. Commissioner of Central Excise, the manufacturer shall recalculate the amount of actual credit attributable to such inputs or on inputs contained in the partially processed goods and thereafter he shall adjust the differential amount, if any, after taking into account the amount already debited while sending the inputs or partially processed inputs from his factory. Certain goods were sent by the petitioners for processing and the petitioners availed credit in respect of inputs used therein but the goods were not received back in the factory of the petitioners within a period of 60 days as prescribed in Sub-rule (11). Both the petitioners after the expiry of the period of 60 days applied for extension of time which was not allowed. Thereafter the Asstt. Collector passed adjudication order demanding Rs. 2,69,275 from M/s Ashoka Metal Decor (P) Ltd., the petitioner in W.P. No. 233/99 and Rs. 9,99,837 from M/s Adit Metal Decor (P) Ltd., the petitioner in the other writ petition. Both the petitioners have filed first appeals before the Commissioner (Appeals).;