Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2002 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2002 (12) TMI 541 - AT - Central Excise
Issues:
1. Availment of deemed credit on re-rolling materials without filing a separate declaration. 2. Disallowance of credit and penalty imposition by the Adjudicating Authority. 3. Appeal against the order upholding the disallowance and penalty imposition. 4. Interpretation of Rule 57G of the Central Excise Rules, 1944. 5. Justification for denial of credit and appeal outcome. The judgment pertains to an appeal before the Appellate Tribunal CEGAT, Mumbai, involving the appellant engaged in the manufacture of M.S. CTD bars and rods of iron and steel under Chapter 72 of the Central Excise Tariff. The appellants availed deemed credit on re-rolling materials without filing a separate declaration as required by Rule 57G of the Central Excise Rules, 1944. Consequently, the credit was disallowed and a penalty was imposed by the Adjudicating Authority, a decision upheld by the Commissioner (Appeals), leading to the appeal. The deemed credit order dated 1-4-94 allowed credit without production of duty paying documents for certain materials used in manufacturing goods falling under specific chapters of the Central Excise Tariff Act, 1985. The Tribunal found that the denial of credit by the lower authorities was unjustified as the appellants had clearly indicated their intention to avail credit in the classification list filed for the relevant period. The Tribunal set aside the impugned order and allowed the appeal. Regarding the interpretation of Rule 57G of the Central Excise Rules, 1944, the Tribunal noted that the rule requires a declaration to be filed specifying inputs and final products, with credit allowed only based on documents indicating duty payment by the original manufacturer. The second proviso to Rule 57G(2) provides a scheme allowing deemed duty paid status for certain inputs without the need for duty paying documents. This scheme is deemed extraordinary, given the difficulty in securing evidence of duty paid inputs. The provision exempts the production of duty paying documents and indirectly eliminates the requirement for a declaration, as the qualifying inputs and final products are detailed in the notification. Therefore, the denial of deemed credit due to a lack of declaration was deemed unwarranted by the Tribunal, which concurred with the Member (Judicial) and allowed the appeal. ---
|