2000 (8) TMI 395 - AT - Central Excise

Summary

Issues:
1. Validity of declaration filed by the assessee under Rule 57G.
2. Disallowance of credit taken by the applicant.
3. Applicability of Rule 57H for taking credit on inputs.

Issue 1: Validity of declaration filed by the assessee under Rule 57G:
The appeal in question, E/709/91, focused on the validity of a declaration filed by the assessee under Rule 57G, specifically concerning the final product asbestos mill board. The declaration was filed before asbestos mill board was included as a final product in the relevant notification. The Collector (Appeals) held that the declaration was valid, allowing the assessee to take credit. However, the department challenged this decision, leading to this appeal.

Issue 2: Disallowance of credit taken by the applicant:
The department contended that the Tribunal's decision in a previous case supported disallowing the credit taken by the applicant. The departmental representative argued that only goods specified under Rule 57H could have declarations filed for them. The department relied on a previous decision and emphasized that the later decision by the Tribunal did not consider this aspect. However, the Tribunal decided not to delve into the reconsideration of the previous decision due to an alternative ground raised by the respondent's representative.

Issue 3: Applicability of Rule 57H for taking credit on inputs:
The Tribunal examined the applicability of Rule 57H, which allowed credit on inputs received before obtaining acknowledgment and declaration under Rule 57G. The rule required the inputs to be used in the manufacture of final products cleared after a specified date. The Tribunal referenced previous decisions to support the view that inputs received before filing the declaration should be considered received "immediately before" filing. Additionally, the Tribunal considered the liberal approach advised by the Board in the initial stages of implementing the Modvat procedure, ultimately allowing the assessee to take credit and dismissing the department's appeal.

In conclusion, the judgment addressed the validity of the declaration filed by the assessee, the disallowance of credit by the department, and the applicability of Rule 57H for taking credit on inputs. The Tribunal's decision favored the assessee, allowing them to take credit based on the circumstances and interpretations of relevant rules and previous decisions.