(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) Heard Mr. Gaurang H. Bhatt, learned Standing Counsel for the revenue.
ADMIT.
We formulate the following substantial questions of law which arise in this appeal :-
"(i) Whether the demand issued under erstwhile Rule 57(1)(ii) is legally valid as per the rules in existence when the show-cause notice was issued and view of its substitution w.e.f. 1.4.2000 vide Notification No.11/2000 CE (NT) dated 1.3.2000. Further substitution with new set of Rules vide Notification No.27/2000 CE (NT) dated 31.3.2000 and whether the proceedings could continue under Section 38 A of Central Excise Act, 1944 in view Sections 131 and 132 of the Finance Act, 2001 which introduces saving and validating provisions ?
(ii) Whether the learned CESTA Tribunal is justified in the eye of law, in the facts and the circumstances of the case, in setting aside the recovery of irregular modvat credit amounting to Rs.18,07,195/-, under erstwhile Rule 57 I, having been fraudulent availed in respect of inputs during the period 1998-1999 to 1999-2000 and in setting aside equal penalty of Rs.18,07,195/-, imposed under Rule erstwhile 57 I(4) and recovery of interest at the appropriate rate on the amount of modvat credit determined to be disallowable and recoverable under erstwhile Rule 57 I (5) ?"
Issue notice to the other side. Paper book be filed within 3 months.
[V.
M. SAHAI, J.] [N.
V. ANJARIA, J.] Savariya Top