2009 (6) TMI 915 - AT - Central Excise

Summary

Issues involved: Determination of entitlement to avail Modvat credit u/s Rule 57G of Central Excise Rules, 1944 for inputs received and recorded within a specific period.

Summary:
The case involved a dispute regarding the availment of Modvat credit for inputs received and recorded within a specified period. The appellant contended that the credit was availed within the stipulated time frame as per Rule 57G. The Tribunal had previously held that HDPE bags are 'inputs' and credit is admissible within a reasonable period of six months from the date of receipt of inputs. The appellant availed the credit in February 2000 for inputs received between March 1994 to March 1995. The Commissioner (Appeals) found the credit availed beyond six months from the duty paying documents. The appellant argued that the case was before the introduction of Rule 57G(5) and compliance with Modvat rules was substantial, citing relevant Tribunal decisions.

The Tribunal considered previous decisions where credit entry in RG23A Part-I within six months was deemed compliant. However, another decision highlighted the relevance of the date on which credit entry was made in Part-II, which in this case exceeded six months from the invoice date. The Supreme Court's ruling clarified the applicability of the rule restricting credit beyond six months post its introduction. The appellant's contention was that entry in RG23A Part-I within six months constituted substantial compliance with the rule. Due to conflicting decisions of Single Member Benches, the matter was referred to a Division Bench to determine the time limit for credit under Rule 57G.

In conclusion, the case raised questions regarding the interpretation of Rule 57G and the timing of credit availment under Modvat rules, necessitating further consideration by the Division Bench.