2001 (2) TMI 444 - AT - Central Excise

Summary

Issues:
Appeal against denial of Modvat credit for Gangsaw Machine due to late declaration.

Analysis:
The appellant filed a declaration for Modvat credit on the Gangsaw Machine after 3 months from receipt, leading to denial of benefit. The appellant argued that they filed a detailed list of capital goods, including the machine, and relied on amended Rules 57G and 57T, along with Circular No. 441/7/99-CX. The appellant cited the case of Kamakhya Steels (P) Ltd., where the Tribunal directed reconsideration based on the amended rules.

The Revenue contended that the proper declaration was late, beyond the 3-month period, and argued that the Assistant Commissioner lacked power to condone such delay. However, the Tribunal noted the amendments to Rules 57G and 57T, as well as the binding nature of circulars on authorities. Referring to Circular No. 441/7/99, the Tribunal emphasized that guidelines applied to pending cases, including appellate proceedings, citing the decision in Mathew M. Thomas v. Commissioner of Income-tax.

The Tribunal found the arguments of the Revenue unconvincing, stating that the amended provisions and circulars were indeed applicable. Considering the amendments to Rule 57G and the relevant circulars, the Tribunal concluded that a re-examination of the matter was necessary. Thus, the Tribunal set aside the impugned order and remanded the case for fresh consideration by the adjudicating authority, with the requirement of granting a personal hearing to the appellants for a fair decision.