2008 (8) TMI 364 - HC - Central Excise

Summary

Issues:
Allowance of credit for inputs not declared in modvat declaration under Rule 57-G of the Central Excise Rules, 1944.

Detailed Analysis:

Issue 1: Allowance of credit for inputs not declared in modvat declaration
The petitioner utilized plastic granules received from a manufacturer for manufacturing the end-product. The petitioner claimed MODVAT credit for the granules under the definition of waste and scrap of plastics. The Assessing Officer rejected the claim, stating the granules did not qualify as waste and scrap of plastics. The Appellate Authority, however, allowed the appeal based on judgments from the Central Excise & Gold (Control) Appellate Tribunal (CEGAT) Chandigarh and Cochin Benches.

Issue 2: Challenge by the department
The department challenged the appellate order before the CEGAT, which also rejected the appeal filed by the Revenue. The CEGAT considered the declaration made by the manufacturer of the granules, classifying them as waste and scrap of plastics, which was accepted by the Central Excise Authorities. The Tribunal held that the Excise Authorities could not take a different view than the one accepted for the consigner-manufacturer. The Tribunal emphasized the consistency in interpretation by the Excise Department for the same item.

Judgment
The High Court upheld the decision of the CEGAT, emphasizing the acceptance of the manufacturer's declaration by the Excise Authorities. The Court ruled against the Revenue, stating that the Excise Department cannot provide conflicting interpretations for the same item. Consequently, the appeal was dismissed in favor of the assessee, with no order as to costs.

This judgment highlights the importance of consistent interpretation by the Excise Authorities and the significance of manufacturer declarations in determining the classification of goods for MODVAT credit eligibility.