2002 (11) TMI 726 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Appeal confirming reversal of Modvat credit for non-filing of declaration under Rule 57G.

Analysis:
The appellant contested the Order-in-Appeal directing them to reverse Modvat credit for inputs due to non-filing of declaration under Rule 57G. They argued that despite filing the declaration and obtaining acknowledgment, it was misplaced. They presented evidence of filing RT 12 returns, maintaining RG 23A register extracts, and defacing invoices for credits. Additionally, they intimated about removing partially processed inputs under Rule 57F(3). The appellant relied on judgments like Reliable Wires (P) Ltd. and Premier Irrigation Equipments Ltd., emphasizing that Modvat credit should not be denied solely for non-filing of declaration.

The Tribunal considered the evidence provided by the appellant, including the acknowledgment being misplaced and the waiver of pre-deposit granted in their favor. The Commissioner (Appeals) had previously accepted their plea in a similar case for the same period, noting that the appellant had filed declarations and maintained all necessary records. The audit party had verified their compliance. The Assistant Commissioner also dropped proceedings for a different period, acknowledging the misplaced acknowledgment. The Tribunal cited the case of M/s. Essar Machine Works Ltd. v. CCE, Chennai, highlighting the mandatory nature of filing declarations. However, in this case, the appellant's evidence, supported by previous decisions and audit verification, indicated that they had indeed filed the declaration, leading to the conclusion that the acknowledgment was misplaced. The preponderance of evidence favored the appellant, resulting in the setting aside of the impugned order and allowing the appeal.