2005 (6) TMI 372 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit amounting to Rs. 1,46,090.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi was filed against the denial of Modvat credit amounting to Rs. 1,46,090 to the appellants. The appellants contended that they were entitled to avail the differential amount of credit after the expiry of the prescribed period of six months as a correction of the original entry in the relevant record. However, the Tribunal disagreed with this contention, stating that Rule 57G prescribes a six-month period for availing the credit from the date of issuance of modvatable documents, including the Bill of Entry. The appellants had initially availed a credit of Rs. 16,234 within the prescribed period but later sought to avail an additional credit of Rs. 1,46,090 after the expiry of the prescribed period, which was not permissible without approaching the Revenue for correction. The Tribunal held that the appellants could not unilaterally avail credit beyond the prescribed period and upheld the denial of the disputed amount of credit.

Furthermore, the Tribunal rejected the appellants' belief that they had initially taken credit for an inadequate amount. Upon reviewing the Bill of Entry, it was found that the additional duty paid at the time of clearance was only Rs. 16,234, which was the amount entitled to credit and already availed within the prescribed period. The argument that a higher amount of duty was paid and credit should be allowed for that amount was dismissed by the Tribunal, as the Bill of Entry reflected only Rs. 16,234 in the additional duty column. Without seeking correction in the Bill of Entry, the appellants were not entitled to avail credit for the differential amount. Therefore, the Tribunal upheld the denial of the disputed credit amount, finding no illegality in the impugned order, and subsequently dismissed the appeal brought by the appellants.