Per Justice S.N. Jha : This appeal by the Revenue arises from the order-in-appeal of Commissioner (Appeals), Central Excise, Ludhiana dated 26.12.2005 setting aside the order-in-original of the Adjudicating authority dated 25.8.2005. By the said order, the Assistant Commissioner as Adjudicating authority disallowed credit of Rs. 1,83,445/- and directed recovery of the amount under Rule 57I (1) (ii) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944 with interest under Section 11AB of the Act read with Rule 57I (5) of the Rules, 1944. Penalty of equal amount was also imposed under Rule 173Q (1) (bb) of the Central Excise Rules, 1944 read with Section 11AC of the Central Excise Act, 1944.

2. The respondent who is a manufacturer of excisable goods had contravened the provisions of Rules 57AC and 57AE of the Central Excise (Amendment) (Second Amendment) Rules, 2000 as applicable during the relevant period by wrongly availing modvat credit amounting to Rs. 1,83,445/- on the basis of sham invoices issued by M/s HBR Steel Corporation. Show cause notice was issued in this regard after visit of the business premises of M/s. HBR Steel Corporation by t