1990 (7) TMI 230 - AT - Central Excise

Summary

Issues:
1. Condonation of delay in filing the appeal.
2. Applicability of Section 11A in cases of disallowance of Modvat credit.
3. Interpretation of Rule 57-I of the Central Excise Rules prior to its amendment in October 1988.

Condonation of Delay:
The Collector of Central Excise, Bhubaneswar, appealed against an order partly allowing the appeal by M/s. Vikrant Televisions (India) Ltd. The respondents raised a preliminary point regarding the condonation of delay, arguing that a separate application should have been filed for it. The appellant explained the delay due to the sudden death of the Collector of Central Excise, which resulted in a delay of 23 days. The Tribunal considered the submissions and condoned the delay, noting that the appellant was prevented by sufficient cause from filing the appeal on time.

Applicability of Section 11A:
The appellant argued that the Collector (Appeals) incorrectly applied Section 11A in a case involving the disallowance of Modvat credit. The appellant contended that prior to the amendment in October 1988, disallowance of Modvat credit did not attract any time bar under Rule 57-I. The respondents cited various Tribunal decisions supporting the Collector (Appeals)' finding on the time bar issue. The Tribunal upheld the Collector (Appeals)' decision that the time limit would apply even in cases of wrong availment of Modvat credit, especially when the credit was utilized, falling within the provisions of Section 11A.

Interpretation of Rule 57-I:
The Tribunal analyzed the effect of reversal of wrongly taken Modvat credit, distinguishing between unused and utilized credit. It was concluded that if the wrongly taken credit was utilized, the recovery of duty non-levied or short-levied would fall under Section 11A. Therefore, the Collector (Appeals)' decision was upheld, dismissing the departmental appeal and entitling the respondent to consequential benefits. The cross objection by the respondents was also disposed of accordingly.