2001 (11) TMI 871 - AT - Central Excise

Summary

Issues:
Appeal against order-in-appeal denying Modvat credit due to discrepancies in declaration under Rule 57G of Central Excise Rules.

Detailed Analysis:
1. Issue of Discrepancies in Declaration: The appellants appealed against the denial of Modvat credit due to discrepancies in the declaration filed under Rule 57G of the Central Excise Rules. The Revenue contended that the scrap received by the appellants was classified under a different sub-heading than what was declared in the invoices. The appellants argued that they declared the inputs as brass waste and scrap under sub-heading 7404, while the Revenue claimed it fell under Heading 7420. The appellants later filed a revised declaration and requested condonation for the delay. They relied on the amendment to Rule 57G by Notification 7/99-C.E. and a Board's Circular to support their case.

2. Amendment to Rule 57G and Circulars: The Tribunal considered the amendment to Rule 57G by Notification 7/99-C.E., which stated that credit shall not be denied if the declaration does not contain all required details or if the manufacturer fails to comply with any other requirements. Additionally, a Circular (No. 441/7/99-CX) specified that these provisions apply to pending cases, as per the decision in Kamakhya Steels (P) Ltd. v. CCE, Meerut. The intervener referred to the binding nature of circulars on authorities and cited a Supreme Court decision emphasizing that proceedings include appellate stages.

3. Applicability of Amendments and Circulars: The Tribunal found that the amended provisions and Circulars were indeed applicable to the case at hand. After thorough examination of the relevant legal provisions, Circulars, and case law, the Tribunal concluded that a re-examination was necessary. The matter was remanded to the Jurisdictional Assistant Commissioner to reassess the admissibility of Modvat credit for the period covered under the appeal and to issue an order in accordance with the law.

4. Decision and Conclusion: As the appellants had specifically declared the inputs as brass waste and scrap, the Tribunal, following the precedent set by the Larger Bench, set aside the impugned order and allowed the appeal. The judgment highlighted the importance of compliance with the amended rules and circulars in determining the admissibility of Modvat credit, emphasizing the need for a re-examination in light of the legal provisions and precedents cited during the proceedings.