- (1.) We have heard learned Counsel for the parties.
(2.) In this appeal, at the instance of the Revenue, following substantial question of law was framed at the time of admission : "Whether the Modvat Credit is available to the assessee on the quantity of HFO short received in the factory and the same was not used in the manufacture of final product and also the assessee was liable for penalty under Section 11AC of the Central Excise Act, 1944 for the excess availment of Modvat/Cenvat credit during the period after 1- 4-2000."
(3.) The short controversy that arises in this case is that the respondent-assessee was in receipt of consignment of HFO in his factory from the importer under relevant invoice evidencing the payment of Counter vailing Duty on the goods consigned under that invoice by the importer. The respondent-assessee was entitled to avail Modvat credit on that basis.;