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2003 (9) TMI 671 - AT - Central Excise
Issues:
1. Claim for Modvat credit on stock of saleable soft and hard waste. 2. Applicability of Rule 57H and transitional provisions. 3. Time limit for claiming Modvat credit under Rule 57H. Analysis: Issue 1: Claim for Modvat credit on stock of saleable soft and hard waste The appellant, engaged in manufacturing yarn, filed a declaration in 1998 claiming Modvat credit for saleable waste stock as of 1-3-1994. The waste was exempted from duty until 16-3-1995. The Asstt. Commissioner allowed the credit of Rs. 24,87,265 for the waste. The Revenue appealed, arguing that the credit was not permissible under Rule 57H(1) and the input documents were too old for credit. The Commissioner (Appeals) set aside the Asstt. Commissioner's order, ruling the transitional credit inadmissible due to the date of claim under Rule 57H. Issue 2: Applicability of Rule 57H and transitional provisions The Commissioner (Appeals) held that the date of claim under Rule 57H was crucial. The appellant contended that the 1998 declaration was a continuation of the 1994 one, but the tribunal disagreed. The tribunal found no merit in the appellant's argument, stating that the 1998 declaration should be considered under Rule 57H as of 1-3-1997. The tribunal noted the appellant's significant delay in claiming the credit, emphasizing the need for a reasonable time limit for such claims. Issue 3: Time limit for claiming Modvat credit under Rule 57H The tribunal rejected the appeal, citing the appellant's substantial delay in claiming the credit for the waste stock. It emphasized the impracticality of allowing claims after extended periods, highlighting the necessity for authorities to verify stock positions promptly for Modvat credit under transitional provisions. The tribunal stressed the importance of timely claims and upheld the rejection of the appeal. In conclusion, the tribunal dismissed the appeal, emphasizing the need for timely claims under Rule 57H and the impracticality of allowing claims after significant delays.
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