1996 (1) TMI 198 - AT - Central Excise

Summary

Issues: Modvat credit on bars, rods, and squares; Limitation period for the demand

Modvat Credit on Bars, Rods, and Squares:
The appeal was filed challenging the denial of modvat credit on bars, rods, and squares. The appellants argued that the items described as rounds and squares were essentially bars, rods, and billets, eligible for modvat credit under Rule 57A of the Central Excise Rules, 1944. They contended that the terms used, like round and square, indicated the cross-section shape, which aligned with bars and rods. The appellants provided evidence from invoices and submissions on the equivalence of RCS to billets. The tribunal found that the items described as squares were indeed billets and eligible for modvat credit. However, for bars and rods, the appellants failed to provide sufficient evidence to support their claim, leading to the denial of modvat credit on bars and rods/rounds.

Limitation Period for the Demand:
Another issue raised was the limitation period for the demand. The appellants argued that a part of the demand was time-barred as per Rule 57-I, limiting the period to six months from the date of taking the credit. The tribunal agreed that demands raised beyond specific dates were hit by limitation, as per the amended Rule 57-I from 6th Oct. 1988. Consequently, the demands raised under the show cause notices dated 26-4-1990 and 28-12-1989 were found to be time-barred for periods prior to 26-10-1989 and 28-6-1989, respectively. The tribunal upheld the impugned order with modifications based on the limitation period, disposing of the appeals accordingly.