2009 (4) TMI 740 - AT - Central Excise

Summary

Issues Involved:
Denial of Modvat credit for non-filing of proper declaration under Rule 57G of Central Excise Rules, 1944.

Analysis:
In this case, the Modvat credit amounting to Rs. 1,57,553.55 was denied due to the alleged non-filing of a proper declaration under Rule 57G of the erstwhile Central Excise Rules, 1944. The appellants had filed a declaration under Rule 57G for M.S. Scrap, but it was claimed that they availed credit on ship breaking scrap classified under different sub-headings. The consultant for the appellant highlighted the relevant gate passes, showing that the appellant received Iron Steel Scrap from old ships, which matched the declared inputs.

The amendment to Rule 57G in 1999, specifically sub-rule 11, states that credit cannot be denied if the goods were received with proper duty-paying documents, utilized in manufacturing finished goods, and duly recorded. In this case, the appellants filed a declaration in broad description, received goods with proper duty-paying gate passes, recorded transactions in statutory records, and used the inputs in manufacturing finished goods. Consequently, there was no valid reason to deny the credit.

Therefore, the presiding judge set aside the impugned order and allowed the appeal, granting consequential relief to the appellant. The decision was pronounced in open court on 30-4-2009.