- (1.) This appeal has been preferred by the assessee against the order dated 23-2-2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for short, the Tribunal' in E/Misc/853/04-B in A.No.E/1316/04-NP(B), proposing following substantial questions of law:- "(i) Whether the order of the learned Tribunal is non-speaking and an unjustified order under the facts and circumstances of the case? (ii) Whether the findings given by the departmental authorities and learned Tribunal are perverse under the facts and circumstances of the case? (iii) Whether the findings of the departmental authorities and the learned Tribunal are as per the records, the statements and evidence on record? (iv) Whether the departmental authorities and learned Tribunal is justified in not allowing the Modvat credit of Rs. 17,90,400/-? (v) Whether the learned Tribunal being the final fact finding authority under the Central Excise Act is not bound to give the detailed finding on the issues raised before it and give the finding after evaluation the evidence on record?"
(2.) Show Cause Notice was issued to the assessee under Rule 57-I of the Central Excise Rules, 1944 (for short, the Rules') read with Section 11A and 11AA of the Central Excise Act, 1944 (for short, the Act'), alleging that for the period from June 1996 to 18-9-1996, the assessee wrongly availed Modvat credit in respect of goods which were never manufactured by the assessee. It was stated that at the time of visit by the team of the department on 18-9-1996, it was found that no power presses were installed in the factory; there was no stock of Washers; there was no other related machinery for running power presses. S/Shri Yashpal, Accountant and Mohinder Kumar made a statement that no power press was installed in the factory; Tikkies/Washers were never manufactured; no raw material for the manufacture of these items was received in the factory. This was also confirmed by Ram Lakhan Jaswal, Foreman. This was further confirmed on enquiries from Rudal Rai, Welder and Govinda and Ravi, Helpers. On physical verification, nil stock of finished Tikkies/Washers was found and no raw material for scrap generated was found.
(3.) Stand of the assessee was that at the time of visit of the team of the department, factory was closed and statement of unknown persons was recorded.;