2002 (2) TMI 1139 - AT - Central Excise

Summary

Issues:
1. Availment of Modvat credit without making a declaration under Rule 57G.
2. Denial of Modvat credit due to lack of particulars of duty payment in dealer invoices.
3. Disallowance of Modvat credit and imposition of penalty.
4. Appeal allowed by Commissioner of Central Excise (Appeals).
5. Revenue appeal against the order of Commissioner (Appeals).

Issue 1: Availment of Modvat credit without making a declaration under Rule 57G

The respondents availed Modvat credit on alloy steel ingots falling under Chapter Heading 7204.00 without making a declaration under Rule 57G of Central Excise Rules, 1944. The Assistant Commissioner rejected the request for condonation of delay in making the declaration as the credit was taken before filing the declaration. The Appellate Tribunal noted that the inputs were duty paid and used in the final products, finding no other discrepancies. The Tribunal held that the denial of the request for condonation solely based on the timing of credit availing was not valid, upholding the order of the Commissioner (Appeals) and rejecting the Revenue appeal regarding the credit of Rs. 1,13,511.05.

Issue 2: Denial of Modvat credit due to lack of particulars of duty payment in dealer invoices

The Assistant Commissioner denied Modvat credit to the party citing that the dealer invoices lacked particulars of duty payment by the original manufacturers. This denial amounted to disallowing a total Modvat credit of Rs. 3,13,571. The Commissioner (Appeals) allowed the party's appeal, but the Revenue appealed against this decision. The Appellate Tribunal noted that the party had collected supplementary documents to establish the duty payment particulars by the original manufacturers. Consequently, the case required verification and reconsideration by the original authority. The Tribunal allowed the Revenue's appeal by remand in respect of the Modvat credit of Rs. 3,13,571, disposing of the Revenue appeal in these terms.

Issue 3: Disallowance of Modvat credit and imposition of penalty

The Assistant Commissioner not only disallowed the Modvat credit but also imposed a penalty of Rs. 2 lakhs on the appellants for availing credit without full particulars of duty payment in the dealer invoices. However, the Commissioner (Appeals) allowed the party's appeal against this decision. The Appellate Tribunal did not specifically address the penalty imposition in its judgment, focusing on the Modvat credit issues and the need for verification and reconsideration.

Issue 4: Appeal allowed by Commissioner of Central Excise (Appeals)

The party filed an appeal against the Assistant Commissioner's decision, which was allowed by the Commissioner of Central Excise (Appeals) in an order dated 30-10-2000. This decision was a precursor to the subsequent Revenue appeal against the order of the Commissioner (Appeals).

Issue 5: Revenue appeal against the order of Commissioner (Appeals)

The Revenue filed an appeal against the order of the Commissioner (Appeals) that allowed the party's appeal regarding the Modvat credit issues. The Appellate Tribunal considered the arguments presented by both parties and ultimately allowed the Revenue's appeal by remand in respect of the Modvat credit disallowed due to lack of particulars of duty payment in dealer invoices.

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