2009 (2) TMI 624 - AT - Central Excise

Summary

Issues involved: Modvat credit disallowance due to non-filing of proper declaration under Rule 57G of Central Excise Rules, 1944.

Summary:
The appellants, engaged in manufacturing lamps, availed Modvat benefit but faced show cause notices for disallowing credit due to improper declaration under Rule 57G. The Original Authority dropped the proceedings, but the Revenue appealed. The Commissioner (Appeals) held Modvat credit inadmissible, leading to the appellants filing appeals. The appellants argued that sub-heading numbers in Modvat declaration matched duty paying documents, and Rule 57G amendment in 1999 should allow credit. They cited relevant case law to support their stance. The DR supported the Commissioner's findings, stating incorrect input descriptions in the declaration. The Tribunal reviewed the case and found that minor nomenclature variations did not warrant credit denial, especially considering the inputs were used in manufacturing and recorded properly. Relying on legal precedents and a relevant circular, the Tribunal set aside the Commissioner's order and allowed the appeals with consequential relief.