2005 (4) TMI 147 - AT - Central Excise

Summary

Issues:
1. Disallowance of input duty credit of Rs. 21,423/- and Rs. 1,087.97.
2. Disallowance of Modvat credit of Rs. 16,48,659/- on countervailing duty (CVD) paid on imported inputs.

Issue 1 - Input Duty Credit Disallowance:
The appellants took input duty credit of Rs. 21,423/- and Rs. 1,087.97, which were disallowed by lower authorities as time-barred under Rule 57G of the Central Excise Rules, 1944. The credit of Rs. 21,423/- was taken beyond the six-month limitation period specified in Rule 57G(2) and was held time-barred. The Tribunal upheld this decision citing precedents. Regarding the credit of Rs. 1,087.97, it was taken within the prescribed time but based on an invoice with a different consignee name. The appellants failed to provide evidence that the mentioned consignee did not avail the credit, leading to the denial of this credit as well.

Issue 2 - Modvat Credit Disallowance on CVD:
The appellants claimed Modvat credit of Rs. 16,48,659/- on CVD paid on imported inputs, which was also disallowed due to being time-barred under Rule 57G(2). The credit was taken after the specified six-month limitation period from the date of the duty-paying documents. The Tribunal referred to previous decisions and upheld the disallowance, emphasizing that the date of the Bill of Entry was relevant to the computation of the limitation period. The Tribunal followed the decision in a similar case and ruled against the appellants.

The Tribunal dismissed both appeals, affirming the lower authorities' decisions on the disallowance of input duty credits and Modvat credit on CVD. The judgment highlighted the importance of complying with the specified time limitations for availing such credits, as per the relevant rules and legal precedents.