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1992 (7) TMI 220 - AT - Central Excise
Issues:
- Appeal against the order allowing modvat credit - Interpretation of Rule 57H of the Central Excise Rules - Dispute regarding eligibility for modvat credit - Appeal before the Appellate Tribunal CEGAT, Bombay Analysis: The judgment involves an appeal against an order regarding the allowance of modvat credit under Rule 57H of the Central Excise Rules. The appellants had filed a modvat declaration for inputs used in manufacturing asbestos fiber pipes, including stock on hand before the declaration. The Assistant Collector allowed the modvat credit for inputs in process and those in the final product stock as of 1-3-1987. The Department appealed, arguing that inputs in process and those in the final product stock were not eligible for credit. The Collector (Appeals) sided with the Department, setting aside the Assistant Collector's order, leading to the appeal before the Appellate Tribunal CEGAT, Bombay. The appellant's consultant argued that Rule 57H allowed modvat credit not only for inputs in stock but also for those used in manufacturing final products cleared after 1-3-1987. The consultant contended that the Assistant Collector correctly allowed credit based on records of inputs in process and final products. The Department's representative supported the order and mentioned an amendment to Rule 57H. The Tribunal noted that Rule 57H allowed credit for inputs in stock or used in final products cleared after 1-3-1987. The Collector (Appeals) contended that only physically verifiable stock of inputs could receive credit, which the Assistant Collector had not done. However, the Tribunal clarified that Rule 57H permitted credit for inputs used in final products cleared after 1-3-1987, not just physically verifiable stock. As the Assistant Collector's verification of inputs in stock, process, and final products was undisputed, the Tribunal upheld the Assistant Collector's order, allowing the appeal, setting aside the Collector (Appeals) order, and reinstating the Assistant Collector's decision.
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