9911796707
TMI Blog1993 (5) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... f the modvat credit, as ordered by the Assistant Collector, Central Excise, Ludhiana, whose order has been confirmed by the Collector, Central Excise (Appeals), Chandigarh. 2. M/s. Antartic Industries Ltd., Ludhiana (hereinafter referred to as the `party ) were importing steel melting scrap, which was used by them for manufacturing steel ingots, falling under Chapter 72 of the Central Excise Tariff. They were availing modvat credit on imported steel melting scrap. 3. During the period Oct., 1990 to July, 1991, they received imported melting scrap weighing 2212.36 MT. The melting scrap so imported was entered in form IV register, and the steel ingots manufactured from this imported melting scrap were recorded in their RG-1 register. No e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. 8. Shri A.S. Sundar Rajan, learned Consultant dealt with the brief facts of the case and submitted that they have rightly availed of the Modvat credit. There was no time limit laid down in Rule 57G of the rules for taking the credit of the duty paid on the inputs, and requested that unconditional stay may be granted. 9. He relied upon the following citations in support of his arguments :- (1) 1989 (22) ECR 367 (CEGAT-SRB). (2) 1991 (56) E.L.T. 853. 10. Shri V.C. Bhartia, learned JDR stated that the party has not followed the procedure prescribed under Rule 57G of the Rules. Relying on the Tribunal s decision in the case - Collector of Central Excise, Bangalore v. Mysore Lac and Paints Works Ltd., 1991 (52) E.L.T. 590 (Tri.) = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lector had stated that the Show Cause Notice did not dispute that credit was admissible on merits, the duty has been paid as per the Bills of Entry and that the finished goods had been cleared on payment of duty. 16. The provisions of Rule 57G of the rules are extracted below :- Rule 57G. Procedure to be observed by the manufacturer. - (1) Every manufacturer intending to take credit of the duty paid on inputs under Rule 57A, shall file a declaration with the Assistant Collector of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in each of the said final products and such other information as the said Assistant Collector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the appropriate duty as indicated in the documents accompanying the goods, has been paid. (3) A manufacturer of the final product shall maintain - (a) an account in Form RG 23A, Parts I and II; (b) in respect of duty payable on final products an account-current with adequate balance to cover the duty of excise payable on the final products cleared at any time. (4) A manufacturer of the final products shall submit to Superintendent of the Central Excise the original documents evidencing the payment of duty alongwith extracts of Parts I and II of form RG 23A every month and the Superintendent of Central Excise shall, after verifying their genuineness, deface such documents and return the same to the manufacturer." 17. It is se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s decision in the case - Collector of Central Excise, Bangalore v. Mysore Lac and Paints Works Ltd., 1991 (52) E.L.T. 590 (Tri.) = 1991 (33) ECR 329 (CEGAT-SRB), the Tribunal has observed that In the absence of any specific rule it has to be held that within a reasonable time the respondents can take the credit due to them so long as they satisfy all the other criteria for eligibility of Modvat credit. In the present case, there is no doubt about the eligibility of the respondents for availing of the Modvat credit. 23. By way of obiter dictum the Tribunal observed that It is not as if the respondents have taken the credit after 6 months which can be taken as a reasonable limit within which they should take the credit taking into consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
