Per S.L. Peeran :

The short question that arises for consideration in this appeal which arises from Order-in-Appeal No. 48/2000 dated 29.2.2000 is to whether the assessee is eligible for modvat credit of 2,43,901/- taken of CVD paid by them covered under DEPB pass book and the same is reflected in the corresponding two Bills of entry dated 24.8.98. The Assistant Commissioner in his Order-in-Original noted that the assessee had manufactured and cleared PVC Plastics Flexible Hoses/pipes cum Rubber Hoses and pipes falling under CET Heading 39.17 and 40.09 respectively. They had availed SSI exemption under Notification No. 9/98 dated 2.6.98 as amended and availed modvat credit facility under 57A and 57Q of CE Rules. On 16.3.99 the Superintendent of the Division on inspection and on verification of records noticed that the appellant had availed irregular modvat credit on some inputs imported under DEPB scheme. He had noted that they had also availed irregular modvat credit to the extent of Rs. 2,43,901/- vide RG 23A Part - II and another amount of Rs. 1,48,593/-, Rs. 45,216/- and Rs. 50,092/- based on Bills of Entries dated 18.8.98; 21.8.98 and 15.10.98 even though the said Bill of