R. Jayaraman, Member (T)

1. For hearing the applicants appeal on merits, they are required to deposit a sum of Rs. 68,176.23, towards duty and Rs. 500/- towards penalty.

2. Shri Willington Christian, the learned Advocate, on behalf of the applicants, contended that the order of the authorities below is prima facie bad in law. The issue relates to the recovery of MODVAT credit alleged to have been wrongly availed of during the period from April 86 to October 1986. This was sought to be recovered by a show cause notice dated 16-11-1987. Shri Willington Christian stated that they have given a .declaration of the inputs in consultation with the departmental authorities as per their understanding and when they received the inputs, the gate pass showed different classification, which they themselves brought to the notice of the department and sought to correct the clerical mistake. There was no revenue implication involved either by way of MODVAT credit on ineligible input getting credit. After this application for rectification was made, the amended declaration was accepted. All the same for the period from April 86 to October 86, a show cause notice came to be issued only on 16-11-8