2001 (4) TMI 619 - AT - Central Excise

Summary

Issues:
1. Whether Modvat credit can be extended on inputs without the necessary declaration under Rule 57G.

Analysis:
In this case, the assessees filed appeals against Orders-in-Original alleging that they were manufacturing HDPE fabric classifiable under Chapter 63 of the tariff. The issue arose when it was discovered that there was an evasion of duty amounting to Rs. 8,58,995.92. The Commissioner confirmed the demand on HDPE sacks and laminated fabric, imposing penalties accordingly. The Tribunal, in its final order, set aside the impugned order and remitted the case back to the adjudicating authority for further verification. It directed the authority to look into the duty paid character of inputs used for manufacturing finished products and to reconsider the penalty imposed.

Subsequently, the Revenue filed reference applications seeking to refer the matter to the High Court, challenging the Tribunal's order of remand. The Tribunal, in its reference order, dismissed the Revenue's applications, citing a previous judgment and Apex Court decisions. The Revenue, dissatisfied with this decision, filed RCPs before the High Court under Sec. 35G of the Central Excise Act to determine the question raised. The High Court directed the Tribunal to refer only one question regarding the extension of Modvat credit on inputs without the necessary declaration under Rule 57G.

As per the High Court's direction, the Tribunal instructed the Revenue to file relevant documents for forwarding to the High Court. The Revenue complied by filing four sets of documents. The Tribunal then ordered the Registry to send the statement of facts and documents to the High Court for disposal of the reference applications.