1994 (12) TMI 214 - AT - Central Excise

Summary

Issues:
1. Compliance with Rule 57G regarding Modvat credit application.
2. Applicability of transitional provisions under Rule 57H.

Compliance with Rule 57G regarding Modvat credit application:
The appeal by M/s. Saraya Steel Limited was against the rejection of their Modvat credit application by the Collector of Central Excise (Appeals), New Delhi. The Assistant Collector disallowed the credit for the period before the date their declaration under Rule 57G was received in his office. The appellants argued that they handed over the application to the Inspector on 21-5-1986, but it was acknowledged by the Inspector on 12-6-1986. They claimed entitlement to the credit from the date of handing over the application. They cited a Tribunal decision and a Gujarat High Court judgment to support their argument. The Tribunal considered the date of acknowledgment by the Inspector as the effective date under Rule 57G, ruling in favor of the appellants.

Applicability of transitional provisions under Rule 57H:
Regarding the Rule 57H claim, the appellants contended that the Assistant Collector wrongly denied them the benefit. They argued that they had regularly accounted for raw materials and submitted necessary returns. The Assistant Collector's finding was challenged as lacking legal basis. The Tribunal noted that the appellants did not apply for the benefit under Rule 57H when filing the declaration. However, considering the submissions and a precedent case, the Tribunal set aside the impugned order and remanded the matter to the Assistant Collector to examine the request for the benefit under Rule 57H on merits. The Tribunal directed a thorough examination of all requirements under Rule 57H during the relevant period before making a decision.

In conclusion, the Tribunal ruled in favor of the appellants on the issue of compliance with Rule 57G, considering the date of acknowledgment by the Inspector as the effective date. For the Rule 57H claim, the Tribunal remanded the matter to the Assistant Collector for a detailed examination of the request on its merits, emphasizing compliance with all requirements under the rule during the relevant period.