2009 (2) TMI 665 - AT - Central Excise

Summary

Issues:
1. Extension of stay granted and early hearing application.
2. Disallowance of Modvat credit for inputs received before filing Modvat declaration.

Extension of Stay and Early Hearing Application:
The Appellate Tribunal allowed the early hearing application for a matter from 1994 due to delays in listing, leading to the dismissal of the application for extension of stay granted in 1994.

Modvat Credit Disallowance:
The appellant took Modvat credit for inputs received before filing the Modvat declaration under Rule 57G of the Central Excise Rules. The Department issued a show cause notice for disallowing Modvat credit and imposed a penalty. The Assistant Commissioner confirmed the demand and penalty, which was upheld by the Commissioner (Appeal). The appellant argued that Modvat credit was utilized only after the Modvat declaration acknowledgment, citing precedents where Modvat credit was allowed even if inputs were received before filing the declaration. The Department contended that Modvat credit was not admissible without filing the declaration, referencing a different Tribunal case. The Tribunal found that Modvat credit was admissible based on Division Bench precedents, setting aside the Commissioner (Appeal)'s order and allowing the appeal.