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2011 (1) TMI 1010 - AT - Central ExciseEntitlement to avail credit on capital goods without filing the declaration under Rule 57T of Central Excise Rules, 1944 - Held that - This issue has been answered in the case of ITC Ltd., (2007 (11) TMI 188 - HIGH COURT MADRAS) in favour of the appellant wherein held that Modvat credit should not be disallowed for procedural lapses - order set aside and allow the appeal of the appellant with consequential relief.
Issues involved: Entitlement to avail credit on capital goods without filing declaration under Rule 57T of Central Excise Rules, 1944.
Analysis: The judgment by the Appellate Tribunal CESTAT, Mumbai, addressed the issue of whether an appellant is entitled to avail credit on capital goods without filing the declaration under Rule 57T of the erstwhile Central Excise Rules, 1944. The Tribunal referred to a previous decision by the Hon'ble High Court of Madras in the case of CCE, Chennai Vs. ITC Ltd., where similar issues were raised regarding the allowance of duty credit on capital goods without filing mandatory declarations under Rule 57T(1) and Rule 57T(2) of the Central Excise Rules, 1944. The High Court had held that minor procedural lapses in filing declarations should not lead to the disallowance of Modvat credit, emphasizing that substantive conditions for credit fulfillment should be the primary consideration. The Tribunal noted that in the impugned order, credit on capital goods was denied solely based on the appellant's failure to file the declaration under Rule 57T. However, given the precedent set by the Hon'ble High Court of Madras in the case of ITC Ltd., where it was ruled in favor of the appellant despite procedural lapses, the Tribunal found no merit in the impugned order. Following the ratio established by the High Court, the Tribunal set aside the impugned order and allowed the appeal of the appellant, granting consequential relief. This decision highlights the significance of substantive compliance over minor procedural lapses in matters concerning the availment of credit on capital goods under the Central Excise Rules, 1944.
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