T K ISPAT P LTD Vs. ASSTT COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) M/s. T.K. Ispat (P.) Ltd., Koregaon, Bhima Dist., Pune have filed this appeal against the order-in-original No. V(68) 15-25/Adj./87/Pt.II/3079, dt. 3.5.1988 passed by the Assistant Collector Central Excise, Pune IV Dn., Pune confirming show cause cum demand dated 21.1.1988 for Rs. 5,95,687.90 raised against them and also imposing a penalty of Rs. 5000/- on them under Rule 173 of the Central Excise Rules, 1944.

(2.) The appellants were heard by me on 28.12.1988 through Shri N.D. Khosla, Excise Consultant who reiterated the submissions made in the appeal petition. Shri Khosla also further submitted that they had acted under a bonafide belief that they were entitled to MODVAT credit on the exempted intermediate goods and they had kept the Department informed in the matter as admitted in the show cause notice dated 23.3.1987. It was therefore, not a case of fraud, evasion or suppression of facts on their part. They were not therefore liable to pay any duty beyond a period of 6 months from the date of receipt of the show cause notice under Section 11A nor were they liable to any penalty under the settled law.

(3.) UNDER the circumstances, I vacate the proceedings and direct the Assistant Collector to submit the case to the jurisdictional collector for necessary action on the lines above. The appeal is disposed of accordingly.