1995 (3) TMI 267 - AT - Central Excise

Summary

Issues involved:
The appeal involves the entitlement to MODVAT credit, duty liability reduction, verification of records, consideration of time bar, and remand to the adjudicating authority.

Entitlement to MODVAT credit:
The appellants filed a misc. application as per the directions of the Delhi High Court, asserting their entitlement to MODVAT credit equal to the duty demanded. The counsel highlighted that relief had been granted by CEGAT on this basis in other cases. The High Court directed the appellants to move CEGAT again for consideration of the MODVAT credit issue, ensuring compliance with the law.

Verification of records and remand:
The advocate presented Annexures 1 to 5, demonstrating the duty paid character of inputs used in manufacturing. Even if Notification No. 202/88 is disallowed, the appellants could still claim MODVAT credit under Notification 177/86 and Rules 57A to 57-J of the Central Excise Rules, 1944. The advocate requested a remand to the adjudicating authority for verifying the records and allowing MODVAT credit, despite no declaration filed under Rule 57G. The matter was remanded based on the need to verify details and consider the time bar issue.

Remand to adjudicating authority:
After considering the arguments from both sides, the matter was remanded to the Collector of Central Excise, Bangalore on two key issues. Firstly, to determine if the demand of duty could be reduced by allowing MODVAT credit without the need for a declaration under Rule 57G. Secondly, the question of time bar was left open for arguments and evidence from both parties. Additionally, the question of penalty was to be considered by the adjudicating authority based on the duty payable after allowing MODVAT credit and the findings on the time bar issue.

Conclusion:
In light of the directions provided, the appeal was allowed by remand to address the issues related to MODVAT credit entitlement, duty liability reduction, verification of records, consideration of time bar, and potential penalty assessment before the adjudicating authority.