JUDGMENT
Jyoti Balasundaram, Member (J)
1. In this case the respondents opted out of the modvat scheme with effect from 1.3.1994. Since there was no balance in their RG 23A Part-II for the stock of inputs lying on 28.12.1993 they paid the duty through their PLA. On 13.6.1994 they opted for modvat credit and accordingly applied for the credit in terms of Rule 57H on the stock of inputs and semi-finished products. Since on some of the inputs and semi-finished products the duty was paid by showing the invoices addressed to themselves, modvat was sought to be denied. The Assistant Commissioner confirmed the demand and also imposed a penalty of Rs.5000/- his order was set aside by the Commissioner (Appeals). Hence this appeal.
2. I have heard both sides. Since the appellants had earlier availed modvat credit in respect of inputs and the credit was reversed by payment of duty through PLA, the inputs and part of the inputs contained in the semi-finished goods became duty paid. In view of this and further in view of the fact that it has been established that the goods are other than the duty paid goods, availment of credit has rightly held to be in order by the Commissioner (Appeals), I therefore uphold the impugned order and reject the appeal.
(Pronounced in Court)