9911796707
TMI Blog1989 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,29,332.27p while they had made declaration of said waste and scrap as input only w.e.f. 6-6-1986. It was alleged that in terms of Rule 57-G the Modvat credit could be taken only after a manufacturer had filed declaration with the Asstt. Collector of Central Excise indicating the description of the final products manufactured in his factory and the inputs intended to be used in each of the said final product and such other information as the jurisdictional Asstt. Collector may require and obtain dated acknowledgement of the said declaration. 1.2. It was also observed that the aforesaid credit taken illegally by the appellants was utilised by them during the period 6-6-1986 to 6-1-1987. 1.3. Accordingly, a show cause notice dated 23-4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er before filing a declaration under Rule 57-G if he is satisfied that (a) such inputs are lying in stock or received in the factory on or after the first day of March 1986, or (b) such inputs are used in the manufacture of final products which are cleared from the factory on or after the first day of March 1986 and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification. It was also indicated in para 10 of their reply to the show cause notice that the appellants had purchased the instant steel melting scrap which had paid duty on or before 31st day of January, 1986. 1.5. The above contention of the appellants was not upheld by the learned adjudicating authority. He also did not fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order which is now in appeal before us. 5. The appellants main reliance is on Rule 57-H which deals with transitional provisions. I find from the appellants appeal memo ground No. (6) that the provisions of Rule 57-H(1) have not been quoted fully by them inasmuch as the appellants have not quoted the proviso to the said sub-rule (1) of Rule 57-H. This proviso in unmistakable terms states that provided that no credit under this sub-rule shall be allowed in respect of inputs received on or after the 1st day of April 1986". It is apparent from the show cause notice that the credit has been taken by them during the period 1-4-1986 to 5-6-1986. Therefore, the Asstt. Collector s discretion given in the first portion of sub-rule (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the credit in terms of Rule 57-H(1) subject to satisfaction of the conditions mentioned therein. However, in respect of M.S. scrap received on or after 1-4-1986 to 5-6-1986 they will not be entitled to any credit because they declared the input waste and scrap only w.e.f. 6-6-1986. 6. Final position of disallowing or allowing the credit may be determined in the light of the above findings. In the facts and circumstances of the case, we do not find any reason to interfere with the penalty of Rs. 5000/- imposed by the Collector. It is not just a technical breach committed by the appellants. They have not only taken the credit illegally during the period 1st April 1986 to 5-6-1986 but they have gone on to utilise it for payment of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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