2001 (1) TMI 361 - AT - Central Excise

Summary

Issues:
1. Denial of credit on undeclared inputs
2. Admissibility of credit on paint, accumulator, pigment additives, and chemicals for paints
3. Denial of credit on tubular spanner
4. Denial of credit on steel plate
5. Denial of credit taken on GP 1 not endorsed and on GP 1 not countersigned/certified by the Central Excise Officer
6. Denial of higher notional credit on special excise duty (SED), deemed credit on SED, and higher notional credit taken in excess of 5%

Denial of credit on undeclared inputs:
The appellants were issued show cause notices proposing disallowance of Modvat credit on various items not declared under Rule 57G. The Tribunal remanded this issue for fresh decision to the Assistant Commissioner in light of relevant amendments and Circulars, following the precedent set in a specific case.

Admissibility of credit on paint, accumulator, pigment additives, and chemicals for paints:
The issue of credit on these items was remanded for re-examination based on a Larger Bench decision and Tribunal's previous rulings in the assessee's case. The Assistant Commissioner was tasked to review the admissibility of credit in this context.

Denial of credit on tubular spanner:
Credit denial on tubular spanner, a part of the tool kit, was set aside based on the Tribunal's decision in the assessee's own case and a related precedent. The Tribunal held that credit was available on this item and also overturned the denial of credit on the complete tool kit.

Denial of credit on steel plate:
The appellants did not contest the denial of credit on steel plates, leading to the Tribunal upholding the decision to disallow credit on this item.

Denial of credit taken on GP 1 not endorsed and on GP 1 not countersigned/certified by the Central Excise Officer:
Following the Tribunal's decision in the assessee's case, credit was deemed admissible as the defects were rectified subsequently, allowing for the credit to be upheld.

Denial of higher notional credit on SED, deemed credit on SED, and higher notional credit taken in excess of 5%:
The appellants did not press for the admissibility of these credits, resulting in the Tribunal upholding the denial. Due to the denial of notional higher credit and deemed credit, penalties were imposed. The penalty amount was reduced to Rs. 5000 considering the circumstances.

The appeals were partly allowed based on the Tribunal's findings and decisions on each issue.