2017 (9) TMI 1363 - AT - Central Excise

CENVAT credit - duty paying documents - denial on the ground that the credit was taken under the transitional provisions on 20.12.1994 without submitting any declaration under Rule 57H (1) (b) of the erstwhile CER, 1944 - Held that - there is no clarity on the facts of the case as to the date of registration, declaration filed under Rule 57G and the application for 57H and thereafter, the applicability of the law and case laws would apply - the matter should be remanded to the Adjudicating Authority to examine the facts in details with the documents and thereafter, the applicability of the law - appeal allowed by way of remand.

Summary

Issues:
1. Availment of Modvat credit under transitional provisions.
2. Declaration of stocks under Central Excise Rules.
3. Applicability of case laws on Cenvat Credit under Rule 57H.

Analysis:
1. The case involved the appellant, engaged in manufacturing PVC pipes, seeking Modvat credit under transitional provisions. The appellant obtained Central Excise registration but faced a Show Cause Notice disallowing credit taken without submitting a required declaration. The Hon'ble Calcutta High Court's order led to the Commissioner's dismissal of the appeal.

2. The Commissioner (Appeals) noted the delayed stock declaration by the appellant under transitional provisions. The appellant argued immediate stock declaration post-registration under Rule 57G. The issue arose regarding the date of registration and stock declaration, as indicated by a letter from the Supdt. of Central Excise directing registration post-declaration.

3. The crucial question centered on whether the appellant declared stocks on the registration date in the Modvat declaration. The ambiguity regarding registration date, Rule 57G declaration, and application for Rule 57H necessitated a remand to the Adjudicating Authority. The lack of clarity on facts required detailed examination with documents to apply relevant laws and case laws for a fresh decision ensuring natural justice principles.

This judgment highlights the significance of adherence to procedural requirements under Central Excise Rules for availing transitional credits and the need for precise documentation to establish entitlement to credits under the law.