2007 (10) TMI 673 - HC - Central Excise

Summary

Issues involved: Challenge to order of Customs, Excise and Service Tax Appellate Tribunal by Revenue regarding MODVAT benefit extension and Rule 57G of Central Excise Rules 1944.

MODVAT benefit extension: The appeal was filed by Revenue against the Tribunal's order setting aside the Commissioner's decision and remanding the matter to rework the duty payable by the assesse. The Tribunal relied on the Supreme Court judgment in Commissioner v. Nagammai Cotton Mills Ltd., where it was held that Rule 57G of Central Excise Rules 1944 is directory, not mandatory. The main question raised was whether MODVAT benefit can be extended suo moto without filing a declaration as required under Rule 57G. The High Court, citing the Supreme Court judgment in the Nagammai Cotton Mills case, concluded that the question of law had already been addressed and dismissed the appeal.

Rule 57G of Central Excise Rules 1944: The Tribunal's decision to set aside the Commissioner's order was based on the interpretation of Rule 57G. The Tribunal allowed the assesse's appeal and directed the Commissioner to rework the duty payable. However, the High Court, following the Supreme Court's ruling in Commissioner v. Nagammai Cotton Mills Ltd., found that the question of whether MODVAT benefit can be extended without filing a declaration under Rule 57G had already been settled. Consequently, the High Court dismissed the appeal filed by the Revenue challenging the Tribunal's decision.