2002 (3) TMI 728 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat credit on the strength of certificates issued by the manufacturer of inputs.
2. Denial of Modvat credit on specific items not declared under Rule 57G of the Central Excise Rules, 1944.

Issue 1: Denial of Modvat credit based on certificates issued by the manufacturer of inputs

The appellants, engaged in manufacturing steel castings, availed Modvat credit on inputs using certificates from input manufacturers. The Commissioner of Central Excise denied Modvat credit of Rs. 1,91,314, stating that the certificates lacked necessary details as per Rule 57E(5) and Rule 57-I. The Commissioner raised concerns about duty debiting and lack of essential information in the certificates. The Tribunal found that the certificates should fulfill Rule 57-I requirements and suggested verification by the Range office. Consequently, the Tribunal set aside the denial of Modvat credit and remanded the matter for reevaluation after verification.

Issue 2: Denial of Modvat credit on specific items not declared under Rule 57G

The Commissioner further denied Modvat credit of Rs. 83,779 to the appellants due to non-declaration of Electric Nipple and Graphite Nipple under Rule 57G of the Central Excise Rules, 1944. The appellants argued that declaring Graphite Electrode Nipple under Chapter 8545.00 adequately covered the related inputs. The Tribunal agreed with the appellants, stating that the declaration of "graphite electrode" sufficed under Rule 57G, overturning the Commissioner's decision. Additionally, the appellants withdrew their appeal for Modvat credit on items like Waste and Scrap of Aluminium, Exothermic Sleeves, and others, amounting to Rs. 1,30,393.

In conclusion, the Tribunal allowed the appeal related to the Modvat credit of Rs. 1,19,314 by remanding it for verification. The appeal concerning the Modvat credit of Rs. 83,779 was allowed, and the appeal for Rs. 1,30,393 was dismissed as withdrawn by the appellants. The judgment emphasized compliance with rules for availing Modvat credit and the importance of accurate declarations to claim such credits under the Central Excise Rules.