2004 (2) TMI 506 - AT - Central Excise

Summary

Issues:
1. Appeal challenging order passed by Commissioner (Appeals) regarding Modvat credit admissibility and penalty imposition.
2. Delay in filing 57G declaration and condonation of delay for taking credit.

Analysis:

Issue 1:
The appeal before the Appellate Tribunal CESTAT, Bangalore was filed by the Revenue against the order of the Commissioner (Appeals) dated 21-12-2000. The Commissioner had accepted the contention raised by the assessee regarding the admissibility of Modvat credit amounting to Rs. 3,38,512/- and had vacated the penalty imposed by the adjudicating authority. The core issue revolved around the acceptance of the Modvat credit claimed by the assessee, which was the subject of dispute between the Revenue and the assessee.

Issue 2:
The case involved the aspect of delay in filing the 57G declaration and the subsequent condonation of delay for taking credit. The respondents had received three consignments back from a supplier with indications of 'stocks returned to the supplier'. The delay in filing the 57G declaration was noted, and the Revenue contended that the assessee failed to take credit within six months from the date of granting condonation of delay, thus challenging the entitlement of the assessee to claim the credit.

In the judgment, the Appellate Tribunal upheld the decision of the Commissioner (Appeals) regarding the admissibility of Modvat credit. The Commissioner had opined that once the delay was condoned, it should be deemed that the assessee had taken the credit on the original date of credit claim. The Tribunal concurred with this view, stating that the effect of condoning the delay was that the credit should be considered as taken on the initial date of credit claim. Consequently, the appeal filed by the Revenue was dismissed by the Tribunal, affirming the decision of the Commissioner (Appeals) regarding the admissibility of Modvat credit and penalty imposition.

In conclusion, the judgment by the Appellate Tribunal CESTAT, Bangalore addressed the issues of Modvat credit admissibility and delay in filing the 57G declaration, ultimately upholding the decision of the Commissioner (Appeals) and dismissing the appeal filed by the Revenue.