2003 (3) TMI 217 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of Modvat Credit under Rule 57A and entitlement to CENVAT credit.

Summary:
1. Issue 1 - Modvat Credit under Rule 57A: The appeal was against the rejection of Modvat Credit under the erstwhile Rule 57A, leading to a dispute over the eligibility for CENVAT credit. The appellants, engaged in manufacturing Linear Alkyl Benzene, faced a challenge regarding the time limit for taking credit under Rule 57G(5), with a specific instance of delayed credit for a consignment received. The original authority and Commissioner (Appeals) ruled against the appellants, prompting the appeal.

2. Issue 2 - Entitlement to CENVAT Credit: The legal provision regarding the time limit for taking credit under Rule 57G(5) was a key point of contention. The appellants argued that the introduction of new Rules from 1-3-2000, with no specified time limit for credit, impacted their case. They highlighted a clarification by the Central Board of Excise & Customs supporting the allowance of credit for situations where Modvat credit had been earned. Citing relevant case laws, the appellants emphasized their entitlement to credit despite a delay in taking it.

3. Judgment: After considering submissions and case laws, the Tribunal noted the absence of a specific date of issue for a bill of entry, distinguishing it from an invoice. Emphasizing the eligibility of the input for credit and the duty paid nature of the input, the Tribunal referenced case laws supporting the allowance of credit even in cases of delayed claims. Noting the lack of a time limit in the amended Rule 57AC(1) and the clarifications by the Central Board, the Tribunal ruled in favor of the appellants. The Order-in-Appeal was set aside, allowing the appeal with consequential relief, if any.