2004 (1) TMI 584 - AT - Central Excise

Summary

Issues:
Late filing of declarations under Rule 57T for capital goods and condonation of delay.

Analysis:
The appellants were late in filing declarations under Rule 57T for capital goods by approximately one month. The adjudicating authority allowed Modvat credit on these goods but did not provide reasons for condoning the delay. The Revenue challenged these orders, and the Commissioner (Appeals) accepted the appeals, noting the lack of reasons for condonation. The appellants appealed to the Tribunal, arguing that the adjudicating authority was not required to record reasons for condonation. The Counsel cited legal precedents to support their case, while the SDR emphasized the importance of reasons for condonation. The Tribunal observed that the Assistant Commissioner must satisfy himself about the circumstances leading to the delay and the cause pleaded by the appellants. As the Assistant Commissioner's order lacked details and did not show satisfaction with the cause, the Commissioner (Appeals) rightly deemed it illegal.

The Tribunal discussed the requirement for the Assistant Commissioner to state his satisfaction with the sufficient cause for delay, even if not disclosing detailed reasons. The Counsel also raised a new contention based on a legal precedent not previously mentioned before the authorities. The Tribunal decided to send the case back to the Assistant Commissioner for a proper speaking order on condonation of delay, considering the new contention in addition to the existing eligibility of goods for Modvat credit. Ultimately, the Tribunal upheld the impugned order but directed a fresh decision by the Assistant Commissioner in accordance with the law. Both appeals of the appellants were disposed of accordingly.