IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.939-941 OF 2010 (Arising out of S.L.P. (C) Nos.13061-13063 of 2009)

M/s. Leader Engineering Works Etc.Etc.     ...Appellant(s)

Versus

Commissioner of Central Excise, Jalandhar ...Respondent(s)

O  R  D  E  R

Delay condoned.

Leave granted.

Heard learned counsel on both sides.

By  consent,  the  matter  is  taken  up  for  final  

hearing.

Having gone through the record, we are of the view  

that the appellants herein will not re-agitate the issue  

of  applicability of  Section 11-A  of the  Central Excise  

Act.  However, the following three issues will have to be  

decided de novo by the Tribunal, which are as follows:

“[i] Whether the appellants were entitled to Modvat  Credit;

[ii]  Whether  the  Authorities  were  justified  in  demanding duty and imposing penalties in the  light of the statement of the appellants that  the  penalty  against  the  supplier  of  raw  material and the importer had to be set aside  and that there was no challenge to that order  by the Revenue; and  

...2/-

- 2 -  

[iii] Whether the demand of duty and imposition of  penalty was justified when the demand of duty  and imposition of penalty stood set aside in  the case of some other parties.”

Accordingly, the impugned order is set aside and  

the  matter  is  remitted  to  the  Tribunal  for  de  novo  

consideration in the light of afore-stated three issues  

formulated  by  this  court.   The  civil  appeals  stand  

disposed of with no order as to costs.

......................J.            [S.H. KAPADIA]

......................J.            [SWATANTER KUMAR]

New Delhi, January 25, 2010.