JUDGMENT

A.K. Sikri, J.

1. The Respondent herein is engaged in the manufacture of Toughened (Tempered) and Laminated Safety Glass for Automobiles falling under Chapter Heading 7004.10 and 7004.20 respectively of the First Schedule to the Central excise Tariff Act, 1985. For the manufacture of the glass of aforesaid nature, the Respondent has been supplying float glass which is the main raw material of the Respondent's product. On this the Respondent has also been availing claim of MODVAT credit of duty paid on the aforesaid raw material, Under Rule 57A of the Central Excise Rules, 1944 (hereinafter referred to as 'Rules').

2. Show cause notices dated 1.9.2002, 14.12.2000 and 29.6.2001 were issued by the Department to the Respondent alleging therein that the Respondent had availed MODVAT credit of inputs that were inherently defective and were neither used nor usable in or in relation to the manufacture of the final products'. In these show cause notices, on the aforesaid basis the Department demanded back the duty in a sum of Rs. 3,63,79,483, Rs. 2,2,57,353 and Rs. 28,53,875/- respectively. The Respondent gave reply to the said show cause notices.

3. At the same time the Respondent als