R. Jayaraman, Member (T)

1. This is an appeal directed against the order in appeal bearing No. V-2(32 Ceta) 1668/88, dated 22-2-1989, rejecting the appellants' appeal against the confirmation of the demand amounting to Rs. 1,02,600/-being the modvat credit alleged to have been incorrectly availed of. There is no need to set out the facts of the case in detail. The confirmation of the demand and the rejection of the appeal are only on the ground that the Gate passes, under which the input materials viz. Naphthalic Anhydride, received by the appellants' factory, have been endorsed thrice by the recipients of the goods prior to receipt in the appellants' factory. The facts, which are not disputed by either side, are that the entire goods covered by the Gate Passes in original packed condition, have been received by the appellants' factory. But these goods have changed three hands duly endorsed by three recipients before they ultimately reached the appellants' factory. The show cause notice has been issued by the Superintendent on the ground as below :

"It is observed that the said gate passes were not issued in the name of SBS Organics Pvt. Ltd., Ankleswar. These gate passes were r