2005 (12) TMI 487 - AT - Central Excise

Summary

Issues: Modvat credit denial due to late filing of declaration.

Analysis:
The appellant, represented by Shri K.K. Banerjee, Advocate, argued that Modvat credit on capital goods was denied due to a late filing of the declaration. He relied on previous decisions to support his contention, including Kamakhya Steels (P) Ltd. v. Commr. of Central Excise, Meerut, Commr. of Central Excise, Patna v. Vishnu Sugar Mills, and Rathi Graphic Technologies Ltd. v. CCE, Jaipur II. The appellant highlighted Notification No. 7/99-C.E. (N.T.) dated 9-2-1999 and Circular No. 441/7/99-CX dated 23-2-1999 issued by the Ministry, emphasizing that these were binding on lower authorities. Thus, the appellant requested a remand to the lower authority for re-examination.

Shri Y.S. Loni, JDR for the Revenue, did not object to sending the case to the lower authority based on the decisions cited by the appellant. After hearing both sides, the judgment delivered by Shri V.K. Jain, J., acknowledged the binding nature of the Notification and Circular on the lower authority. It was noted that the case had been adjudicated much later after the issuance of the Notification and Circular. Consequently, the judgment directed a remand to the lower authority for a re-examination of the matter, emphasizing the need for adjudication following the principle of natural justice. The appeal was allowed by way of remand, ensuring a fair process in the adjudication.