2007 (8) TMI 545 - AT - Central Excise

Summary

Issues:
Challenge to Commissioner (Appeals) order disallowing credit of Rs. 1,48,500.

Analysis:
The Revenue challenged the Commissioner (Appeals) order that set aside the order disallowing credit of Rs. 1,48,500. The department's representative argued that Modvat credit could only be available for entries in RG-23A Part-II register, not in personal ledger accounts. On the other hand, the respondent's counsel contended that since the debit was made from PLA under Rule 57F(4), credit was rightly taken in the same account. They referred to a Tribunal decision stating that credit could be taken in RG23 Part-II or in the PLA maintained by the manufacturer under Rule 57G(7).

When inputs were to be removed under Rule 57F(4), 10% of the value of inputs needed to be debited as per sub-rule (6)(1) of Rule 57F. Sub-rule (6)(2) stated that the debit should be made in the account maintained under sub-rule (7) of Rule 57G or in the current account under Rule 173G. The provision allowed the manufacturer to take credit equal to the debited amount, covering accounts in RG-23A Part-I and Part-II, as well as the current account under Rule 57G(7)(b). The Commissioner (Appeals) correctly passed the order following the Tribunal's decision in Pami Metal (P) Ltd., warranting no interference, leading to the dismissal of the appeal.

In conclusion, the Tribunal upheld the Commissioner (Appeals) order, allowing the credit of Rs. 1,48,500, based on the provisions of Rule 57F and Rule 57G. The decision was in line with the interpretation of the rules and previous Tribunal judgments, leading to the dismissal of the Revenue's appeal.