1998 (10) TMI 301 - Commissioner - Central Excise

Summary

Issues:
Appeal against Order-in-Original, Waiver of predeposit under Section 35F, Denial of credits on certain inputs, Contesting findings of the adjudicating authority, Applicability of case laws, Eligibility for credit, Validity of duty paying documents, Imposition of penalty.

Analysis:
The appeal was filed against Order-in-Original No. 55/Adj/C.Ex/ADC/96, where the appellant, a manufacturer of H.T./L.T. Coils, contested the denial of credits on certain inputs under the impugned order. An application for waiver of predeposit under Section 35F was also submitted. During the personal hearing, the Director reiterated the submissions made with the appeal, providing written points and supporting documents.

The facts revealed that the appellant availed credit on inputs without filing declarations under Rule 57G of the Central Excise Rules. The show cause notice proposed denial of credits, leading to the impugned order denying credits of Rs. 65,586 and imposing a penalty of Rs. 5,000. The appellant challenged this decision by filing an appeal.

The adjudicating authority denied credits amounting to Rs. 50,474, Rs. 1,574, and Rs. 3,161 on various grounds related to discrepancies in input declarations. The appellant contested these denials, citing case laws supporting their position. The judge found merit in the appellant's contention, holding that the credits were wrongly denied based on the similarity between declared and received inputs.

Regarding specific items like insulator and epoxy bushing, covered under Chapter 8546, the judge ruled in favor of the appellant, stating that the broad term "insulator" encompassed epoxy bushing as well. The appellant's revised declaration within the stipulated time further supported their eligibility for credit.

In the case of insulation paper board (P.G. grade), the judge noted that the item was supplied under a different description, but the appellant's revised declaration within the prescribed time validated their right to credit. However, credits amounting to Rs. 2,263 taken on invalid duty paying documents were rightly denied.

Ultimately, the judge found the appellant eligible for credit amounting to Rs. 55,209 out of the total denied credits, leading to the setting aside of the imposed penalty. The appeal was partially allowed, modifying the impugned order accordingly.