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2007 (2) TMI 568 - AT - Central Excise
Issues:
1. Entitlement to benefit of Notification No. 58/97-C.E. (N.T.) regarding deemed credit for inputs paid by cheque or bankers' cheque. Analysis: The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a crucial issue regarding the entitlement of the appellant to the benefit of Notification No. 58/97-C.E. (N.T.), specifically concerning deemed credit for inputs paid by cheque or bankers' cheque. The appellant sought the benefit of this notification, which allows deemed credit for inputs obtained from the manufacturer if the payment is made by specific means. However, the authorities disallowed deemed credit amounting to Rs. 8,254 as the payment was not made by cheque, demand draft, or bankers' cheque. The appellant adjusted the amount against future payments due from the input manufacturer. The Tribunal noted that the essential condition of the notification, requiring payment by cheque or demand draft for availing deemed Modvat credit, was not met in this case. Consequently, the lower authorities correctly held that the appellant was not entitled to deemed Modvat credit. The Tribunal, after thorough consideration, found no merit in the appeal and rejected it. Additionally, the application for the restoration of the appeal was also disposed of in the same judgment. This judgment highlights the importance of strict adherence to the conditions specified in notifications for availing benefits such as deemed credit. The Tribunal emphasized that the specific requirement of payment by cheque or demand draft, as outlined in Notification No. 58/97-C.E. (N.T.), must be met to claim the benefit of deemed Modvat credit. By analyzing the facts and legal provisions, the Tribunal concluded that the appellant failed to fulfill this essential condition, leading to the rightful disallowance of deemed credit by the lower authorities. The decision underscores the significance of compliance with statutory requirements and the implications of non-compliance on the entitlement to tax benefits and credits.
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