2005 (1) TMI 540 - AT - Central Excise

Summary

Issues: Credit availed on raw materials based on original invoices with permission under Rule 57G(6) of Central Excise Rules, 1944.

Upon hearing the arguments presented by the Consultant for the appellants and the SDR for the Revenue, it was noted that the appellants had taken credit on raw materials following the proper procedure. The appellants had obtained permission from the Assistant Commissioner, Salem, as required under Rule 57G(6) of the Central Excise Rules, 1944, within the specified time frame. The Consultant argued that the credit availed was in compliance with the Board's Circular No. 275/109/96-CX, dated 26-11-1996, which allowed credit to be taken within six months from the date of permission. The SDR supported the impugned order, but the Tribunal found in favor of the appellants.

In the case at hand, the appellants had taken credit amounts on specific dates after obtaining permission from the Assistant Commissioner within the stipulated time frame. The Circular No. 275/109/96-CX, dated 26-11-1996, clarified the period within which credit could be availed under Rule 57G. The Circular emphasized that the six-month restriction applied only when the assessee himself takes or avails credit. In situations where the transporter's copy of the invoice is lost and credit is permitted after six months, the restriction of six months does not apply. It was deemed appropriate to take credit within six months of the date of permission given by the Assistant Commissioner based on the original copy of the invoice. The Tribunal found that the credit availed by the appellants was in accordance with the Board's circular, leading to the decision to set aside the impugned order and allow the appeal, granting consequential benefits to the appellants.

In conclusion, the Tribunal's judgment highlighted the importance of adhering to the rules and regulations governing the availing of credit on raw materials in excise matters. The decision underscored the significance of obtaining proper permission within the specified time frame and following the guidelines set forth in relevant circulars to ensure compliance and eligibility for credit availed.