2004 (5) TMI 490 - AT - Central Excise

Summary

Issues: Denial of Modvat credit due to discrepancy in input description in declaration and GP-I.

In this case, the main issue revolved around the denial of the Modvat credit to the appellants based on the discrepancy between the description of inputs provided in the declaration and the GP-I. The appellants had declared the inputs as "Semi-Finished Product" of 'Non Alloy Steel' falling under Chapter sub-heading 7207.90 of the Central Excise Tariff. However, the credit was denied as the description in the GP-I stated 'Roughly Shaped Steel Forging'. The appellants argued that the amendment to Rules 57G and 57T by Notification No. 7/99-C.E. (N.T.) dated 9-2-99 prohibited the denial of credit based on discrepancies in the declaration details. They also cited a Larger Bench decision in the case of Kamakhya Steels (P) Ltd. v. C.C.E., Meerut, which supported their argument.

The Tribunal noted that the denial of credit was solely based on the discrepancy between the descriptions in the declaration and the GP-I. The Tribunal highlighted that the amendment to Rules 57G and 57T prevented the denial of credit for such reasons. The Tribunal referred to the decision in Kamakhya Steels (P) Ltd. where it was held that the amendment applied to pending cases as well. Since the Revenue did not contest the duty payment on the inputs received by the appellants, the Tribunal set aside the impugned order and allowed the appeal.

In conclusion, the judgment emphasized the importance of complying with the amended rules regarding the details in declarations for claiming Modvat credit. The Tribunal's decision was based on the applicability of the rule amendment to prevent denial of credit due to discrepancies in input descriptions, as established by the precedent set in the Kamakhya Steels (P) Ltd. case.