1998 (3) TMI 263 - AT - Central Excise

Summary

Issues: Non-declaration of certain inputs for Modvat credit

In the judgment delivered by Appellate Tribunal CEGAT, New Delhi, the issue involved in the five appeals was the non-declaration of certain inputs for the purpose of claiming Modvat credit. The appeals were heard together due to the similarity of the issue.

Analysis:

The first appeal, Order-in-Original No. 14/CE/D/AC/91, dated 4-3-1991, dealt with the non-declaration of M.S. Flats exceeding 5 mm and Rollable Steel Butts for Modvat credit. The Assistant Collector's decision was upheld for these items as no declaration was filed under Rule 57G(2) for the specific Gate Passes, thus disallowing Modvat credit for these products.

Regarding Gate Pass No. 855, dated 17-3-1989, which described rollable Steel Butts, it was found that these items were correctly declared, allowing Modvat credit on this Gate Pass. The Collector (Appeals) decision was confirmed in this regard.

In the second appeal, Order-in-Original No. 15/CE/D/AC/91, dated 4-3-1991, the inputs described as M.S. Melting Scrap were correctly declared, allowing Modvat credit. The Commissioner (Appeals) findings were confirmed for these Gate Passes.

The third appeal, Order-in-Original No. 16/CE/AC/D/91, dated 4-3-1991, involved various descriptions of inputs like Semi Rolled Plate, Rejected and Cut Pieces of Wire and Wire Rods, Mini Ingots, and Defective Slabs. The Tribunal concluded that Modvat credit would be admissible on items correctly declared, based on the nature of the inputs and their alignment with the declaration.

In the fourth appeal, Order-in-Original No. 17/CE/AC/D/91, dated 4-3-1991, the items declared as H.R. Cut Flat Ends were found to be covered by the declaration of waste and scrap of cuttings of flat rolled products, making them eligible for Modvat credit.

Lastly, in the fifth appeal, Order-in-Original No. 19/CE/AC/D/91, dated 4-3-1991, all items were covered by the declaration except M.S. Piece Roughly Shaped. As this specific item was not covered by any declaration, Modvat credit was deemed inadmissible for it.

The judgment concluded by disposing of the five appeals based on the specific findings for each Gate Pass and input description, either confirming or overturning the lower authorities' decisions regarding Modvat credit eligibility.