1999 (2) TMI 160 - AT - Central Excise

Summary

Issues:
- Denial of Modvat credit on capital goods
- Penalty for non-filing of RT 12 return
- Imposition of penalties under Central Excise Rules

Analysis:

Issue 1: Denial of Modvat credit on capital goods
The appellant appealed against the Order-in-Appeal that disallowed Modvat credit on the grounds that the goods did not qualify as 'capital goods'. The adjudicating authority imposed penalties for non-filing of necessary intimation and late filing of RT 12 return. The Commissioner (Appeals) upheld the disallowance of Modvat credit due to non-filing of intimation and delay in RT 12 return filing. The appellant argued that necessary intimation was submitted promptly upon receipt of goods, but the Commissioner did not address this in the order. Rule 57T mandates supplying goods' particulars to the Superintendent upon receipt. As the intimation was filed the next day, the disallowance of Modvat credit and penalties were deemed unsustainable. The Tribunal partially allowed the appeal, setting aside the disallowance and penalties.

Issue 2: Penalty for non-filing of RT 12 return
A penalty of Rs. 1,000 was imposed for delayed RT 12 return filing under Rule 210. The appellant cited a family bereavement as the reason for the delay, but no evidence was presented to substantiate this claim. Consequently, the Tribunal found no fault in the penalty imposed under Rule 210, upholding the impugned order in this regard.

Issue 3: Imposition of penalties under Central Excise Rules
Penalties of Rs. 10,000 under Rule 173Q and Rs. 1,000 under Rule 210 were imposed by the adjudicating authority. The Commissioner (Appeals) upheld these penalties due to non-filing of intimation and delayed RT 12 return submission. However, as the necessary intimation was provided promptly after goods receipt, the Tribunal deemed the penalties unsustainable and set them aside. The appeal was partly allowed based on these grounds.

This detailed analysis of the judgment highlights the key issues, arguments presented, and the Tribunal's decision on each matter, providing a comprehensive understanding of the legal implications and outcomes of the case.