Per Jeet Ram Kait : This appeal filed by M/s. Grasim Industries Ltd. (herein after referred to as the appellants) is directed against the Order in Appeal No. 57/03 SCN (TRY-II) dated 25.2.2003 passed by the Commissioner of Central Excise (Appeals), Trichy whereby the Commissioner has rejected the appeal of the appellants and upheld the order passed by the original authority wherein the original authority has disallowed the credit of Rs. 2,39,96,904/- being the excess credit availed by the appellants on capital goods, besides imposition of penalty of Rs. 2,000/- under Rule 173Q of the CE Rules, 1944. He had also ordered for recovery of interest in terms of Section 11AA of the CE Act, 1944.

2. The brief facts of the case are that the appellants are engaged in the manufacture of cement and clinker falling under Chapter 25 of the Schedule to the CETA 1985. They are availing Modvat Credit of duty paid on the inputs as well as capital goods under Rule 57A and 57Q of the CE Rules. The appellants after filing necessary declaration for Modvat credit of duty paid on capital goods, imported certain capital goods under Project Import Regulations falling under Heading No. 98.01 of the Custo