2008 (6) TMI 414 - AT - Central Excise

Summary

Issues involved: Determination of the period for filing MODVAT declaration u/s Rule 57T(1) in relation to the registration date of the factory or the receipt date of capital goods.

Summary:
The appeal before the Appellate Tribunal CESTAT, Chennai involved the issue of whether the period for filing MODVAT declaration under Rule 57T(1) should be calculated from the registration date of the factory or the receipt date of capital goods. The respondents, engaged in cotton yarn manufacturing, had obtained Central Excise registration on 17-6-1997 and procured capital goods before that date. The MODVAT declaration was filed within 3 months from the registration date but beyond that from the receipt date of capital goods. The question was whether the premises where the capital goods were received could be considered a "factory" at that time. The Tribunal noted that manufacturing activity had not commenced when the capital goods were received, and a place could only be termed a "factory" when manufacturing activity took place. Therefore, the capital goods were deemed to have been received in the factory on 17-6-1997, the registration date. The delay in filing the declaration was rightly condoned by the Assistant Commissioner, and the appellate authority's decision was upheld based on precedent. Consequently, the Revenue's appeal was dismissed.

(Dictated and pronounced in the open court)