2007 (2) TMI 475 - AT - Central Excise

Summary

Issues:
1. Availment of modvat credit beyond the permitted time period.

Analysis:

The judgment by the Appellate Tribunal CESTAT, Mumbai dealt with the issue of availment of modvat credit beyond the permitted time period. The Tribunal reviewed the impugned order passed on 12-11-2003, which allowed modvat credit on GP 1 in favor of the assessee. The Notification No. 16/94, dated 30-3-1994, introduced the invoice system for modvat credit, with an extension granted till 31-12-1994 by Notification No. 30/94, dated 29-6-1994. The Commissioner of Central Excise (Appeals) had set aside the order, alleging that the assessee availed modvat credit beyond the prescribed period. However, the Tribunal found that the assessee had availed the credit on 1-11-1994, well within the extended time frame till 31-12-1994. The Tribunal also noted that the Commissioner of Central Excise (Appeals) failed to consider Notification No. 30/94, dated 29-6-1994, while making the decision.

The Tribunal referenced the decision of the Apex Court in J.K. Synthetics Ltd. v. Collector of Central Excise, 1996 (86) E.L.T. 472 (S.C.), which established that an ROM application could rectify errors in orders passed ex-parte. Based on the discussion and findings, the Tribunal set aside its earlier order dated 12-11-2003. Consequently, the appeal filed by the assessee was allowed, overturning the impugned order passed by the Commissioner of Central Excise (Appeals), Mumbai. The judgment emphasized the importance of adhering to the prescribed time frames for availing modvat credit and the need for a thorough consideration of relevant notifications and legal precedents in such cases.