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TMI Blog1990 (12) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... rted these operations without obtaining a Central Excise Licence and without observing other excise formalities. The Central Excise authorities charged them for violations of Central Excise law for the manufacture of the goods without a licence and observance of other formalities and demanded duty in respect of the scrap manufactured by the process of ship breaking. The appellants claimed the benefit of MODVAT credit before the learned Collector in the adjudication proceedings and pressed into service the transitional provisions of Rule 57H(l)(ii) of the Central Excise Rules. The learned Collector, however, did not accept the appellants plea and held as under : So it is difficult for me to hold that in terms of transitional provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleaded that the facts in that case and the present one are, pari materia and the ratio of the decision of the Tribunal squarely applies to the facts of this case. 3. The learned D.R. concedes, that the facts in the two cases are similar and pleaded that he cannot distinguish the facts in that case from the present one. 4. We observe that this Tribunal in the case of Sree Jaya Steels has held as under: We observe that it is not disputed that the ship brought in for breaking into scrap is a specified input for the purpose of taking MODVAT credit for the manufacture of scrap therefrom and that after the declaration under Rule 57G had been filed the appellants have been given the benefit of the MODVAT credit. The issue before us, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aration but before the acknowledgement could be obtained by the manufacturer. The second part of the Rule 57H, i.e. sub-rule (ii) of Rule 57H(1) allowed credit in cases where before obtaining the dated acknowledgement the inputs have been used in the manufacture of the final products which are cleared from the factory on or after the 1st day of March, 1987. In the present case we find that the appellants had started breaking the ship before they filed the declaration under Rule 57G and part of the ship had already been broken and scrap obtained therefrom cleared by them and it cannot, therefore, be said that part of the ship out of which the scrap was generated was lying in stock or was lying before the dated acknowledgement was obtained by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Official Liquidator, (1965) 35 Corn. Cas. 340 at pp. 344-45." 5. In T.P. Mukherjee s Law Lexicon Vol. I (1982 Edition) under the heading Immediately before dissolution" in the context of Section 187 of the Income-tax Act, 1961 has been shown to mean preceding the date of dissolution. 6. Inasmuch as Rule 57H, which has been titled as Transitional provisions , has been kept on the statute book much after 1987 when it was introduced after amendment it has to be held that the benefit of this Rule was intended to be given to the manufacturers even after March, 1987 and the wording immediately before in this context has to be read as preceding the date as set out in the Law Lexicon. In the light of this when we examine the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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