2006 (10) TMI 295 - AT - Central Excise

Summary

Issues:
The appellant challenged the order upholding the demand of Modvat credit wrongly availed and penalty imposed.

Details:
The appellant, engaged in manufacturing excisable goods, received synthetic enamel paints for reprocessing, intending to avail Modvat credit. The Revenue alleged wrongful availment of Modvat credit against provisions of Rules 173H, 52-A, and 57-G.

The appellant argued that under the Modvat scheme, duty-paid goods used in manufacturing final products qualify as "input," entitling them to Modvat credit after compliance with Rule 57G declaration.

Authorities found a delay in filing the Rule 57G declaration after goods receipt, concluding the appellant couldn't avail Modvat credit for those goods.

Rule 57G mandates filing a declaration before taking credit on duty-paid inputs, with provisions for condonation of delay under specific circumstances. No such application for delay condonation was made by the appellant.

The appellant's failure to comply with Rule 57G(1) rendered them ineligible for Modvat credit, justifying the confirmed demand and penalty. The appeal was dismissed.