Per Mrs. Archana Wadhwa, Member (Judicial):

Briefly stated the facts of the case are as under :-

1.1. The appellants are engaged in the manufacture of Winding Wire made of copper under Chapter 85 of the Central Excise Tariff Act, 1985, out of Electrolytic Copper Wire Rods in their factory situated at Durgapur in the State of West Bengal. During the period relevant for the purposes of the said appeal, the appellants were working under the MODVAT Scheme after following the due procedure.

1.2. The appellants availed the MODVAT Credit of Rs. 7,85,471.00 on the basis of invoices dated 28.10.95, 4.11.95 and 9.11.95 issued by M/s. M.M.T.C. Ltd., Indore. The duplicate copies of the invoices were produced by the appellant firm before the jurisdictional Range Superintendent and on being satisfied about the genuineness and authenticity of the same, he defaced them. However, subsequently, by a letter dated 7.3.1996, the appellants' Range Superintendent directed them to reverse the MODVAT Credit of Rs. 7,85,471.00 on the alleged ground that the invoices on the basis of which the same was taken were not in conformity with the provisions of Rule 57GG of the Central Excise Rules, 1944 in as much as the registered dealer-cum-importer did not comply with the provisions relating to imports and hence the said invoices were not the valid documents for availing the Credit. This direction was issued to the appellants on the basis of a letter dated 7.2.96 written by the Assistant Commissioner, Indore. The appellants' jurisdictional Assistant Commissioner, Durgapur, informed them that the invoices on the basis of which, the appellants had taken the MODVAT Credit had been declared inadmissible. On the directions of the Central Excise Authorities, the appellants reversed the whole amount of the MODVAT Credit involved in the disputed invoices.

1.3. The matter did not rest here. There was subsequent development and the appellants were informed by his Range Superintendent vide his letter dated 15.5.96, that on verification of all the relevant documents filed/produced by the appellant firm, the disputed invoices issued by M/s. M.M.T.C. Ltd., Indore, were found to be in full conformity with the requirements of Rule 57GG of the Central Excise Rules, 1944. The Superintendent of Central Excise having the jurisdiction over M/s. M.M.T.C., Indore vide his letter dated 16.5.97 addressed to the appellants' Range Superintendent, informed that all the relevant papers and documents relating to inputs covered by the invoices issued by M/s. M.M.T.C., Indore, were in order, except a small amount of Rs. 34,387.60. M/s. M.M.T.C. Ltd., Indore also informed the appellants vide their letter dated 13.6.97, that all the disputed invoices, on verification of their jurisdictional Superintendent, were found to be valid documents. On receipt of this communication, the appellants approached their jurisdictional Assistant Commissioner for re-crediting of the MODVAT Credit amount of Rs. 7,85,471.00 reversed by them under the directions of their Superintendent. Having failed to get any response from the Assistant Commissioner, the appellants on their own took the re-credit of the said amount in their RG-23A Part-II Register on 10.6.1996 with due intimation to the Assistant Commissioner.

1.4. On the basis of the above facts, a show cause notice dated 12.6.96 was issued to the appellants alleging that re-crediting of the MODVAT Credit was not in accordance with law and amounts to contravention of the provisions of Rule 57G read with Rule 57A, in as much as the triplicate copy of the concerned bill of entry was not produced and the amount was re-credited without prior permission of the Assistant Commissioner.

1.5. On adjudication, the Assistant Commissioner confirmed the said demand of duty and on appeal against the above Order before the Commissioner (Appeals), the appellants did not succeed. Hence the present appeal before the Tribunal.

2. After hearing both sides, the appeal was allowed a