2005 (5) TMI 502 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat/Cenvat credit on procedural lapse.
2. Dispute regarding declaration of Integrated Circuits as inputs under Rule 57G.

Analysis:
1. The appellant contended that denial of Modvat/Cenvat credit on duty paid Integrated Circuits due to a procedural lapse in not filing a declaration under Rule 57G was unjustified. The appellant argued that the goods were duty paid, properly accounted for, and used in manufacturing dutiable goods. Referring to Circular No. 441/7/99-CX, the appellant emphasized that minor procedural lapses should not lead to credit disallowance if the receipt of duty paid inputs is confirmed. The appellant cited relevant case laws to support their argument. However, the learned D.R. supported the impugned order, asserting that the Integrated Circuit was not declared as an input under Rule 57G by the appellant, which is a substantive requirement to prevent duty evasion.

2. The disagreement centered on whether Integrated Circuits (I.C.) and Central Processing Unit (CPU) were synonymous, as the appellant claimed. The appellant submitted a declaration under Rule 57G mentioning CPU (P-120), believing the Integrated Circuits to be CPUs. The appellant also presented a confirmation from the consignor stating that the supplied Integrated Circuits were indeed CPUs. However, the respondent argued that the declaration submitted did not mention I.C. as an input, and the appellant failed to provide technical evidence supporting the equivalence of I.C. and CPU. The respondent highlighted that previous judgments cited by the appellant were in contexts where exempted inputs became dutiable, unlike the present case. The Commissioner (Appeals) upheld the denial of credit, deeming the order reasoned and elaborate, concluding that the appeal lacked merit.

In conclusion, the appeal challenging the denial of Modvat/Cenvat credit on Integrated Circuits and the dispute regarding the declaration of I.C. as an input under Rule 57G was dismissed by the Appellate Tribunal CESTAT, Kolkata.