2004 (1) TMI 597 - AT - Central Excise

Summary

Issues: Availability of Modvat credit on capital goods and inputs.

Analysis:
1. Availability of Modvat Credit on Capital Goods:
The issue in these appeals pertains to the availability of Modvat credit on the capital goods and inputs in dispute. The Modvat credit on the capital goods, specifically NDT equipment, was disallowed to the appellants due to their failure to file a declaration within the specified time as per Rule 57Q. The Assistant Commissioner declined to condone the delay in filing the declaration, citing non-compliance with the proper proforma and Rule 57Q. The appellants' application for condonation of delay was rejected, and they did not challenge this decision. Consequently, the Modvat credit on the capital goods was rightly disallowed to the appellants based on non-compliance with Rule 57Q.

2. Denial of Credit on Inputs:
Regarding the inputs such as channels, hose clips, metallic springs, and thrust plate, the appellants did not file specific declarations for these items. Instead, they submitted a general declaration, leading to the denial of credit. The failure to declare the specific use of these inputs and the absence of any specific declaration resulted in the rightful denial of credit to the appellants. The judgment referred to the case of UP State Sugar Corporation Ltd. v. CCE, Allahabad, where it was established that non-filing of the declaration does not impact Modvat credit admissibility if other particulars are available. However, in this case, the appellants neither disclosed nor proved the specific use of the inputs in or in relation to the production of their final product.

3. Conclusion:
In conclusion, after considering the arguments and evidence presented, the judgment found no illegality in the impugned order. The appeals filed by the appellants were dismissed based on the non-compliance with Rule 57Q for capital goods and the lack of specific declarations for the inputs in question. The decision was made in accordance with the law, and the denial of Modvat credit was upheld based on the established facts and legal provisions.

This detailed analysis highlights the key aspects of the judgment, including the reasons for disallowing Modvat credit on capital goods and inputs, the legal precedents referenced, and the final decision of the Appellate Tribunal CESTAT, NEW DELHI.