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TMI Blog1993 (7) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... C.E., dated 1-3-1986; and (2) whether the appellants were entitled to avail Modvat credit under Rule 57A from 26-5-1990 onwards after issue of G.P. 1 No. 58 when they crossed the exemption limit of Rs. 20 lakhs without filing a fresh declaration under Rule 57G. 2. On the first issue the Collector (Appeals) held there is no doubt that the appellants were not entitled to take credit of excise duty on the inputs while they remained within the exemption limit of Rs. 20 lakhs under Notification No. 175/86-C.E., dated 1-3-1986. Under Rule 57A the credit of excise duty can be taken only if the specified inputs are utilized in the manufacture of final products which are not exempt from payment of duty . On the question of filing declaration, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounting to Rs. 4,25,282/- was utilised by them in their R.G. 23A Part II towards payment of duty on final products during this period. Further they took credit of Rs. 90,380 during the month of September, 1990 without furnishing a fresh declaration under Rule 57G. The appellants utilised an amount of Rs. 88,732 towards payment of duty on the finished products cleared during the month of September. Accordingly two show cause notices dated 20-9-1990 and 27-2-1991 were issued asking the appellants to show cause as to why the credit of Rs. 6,47,752.02 and Rs. 90,380 availed during the period April 1990 to August 1990 and during the month of September respectively should not be disallowed. Further why the credit amounting to Rs. 4,25,282 and Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of filing declaration, Ld. Advocate argued that all along the appellants had in fact filed declaration for the year 1990-91 by calling reference only to the earlier declaration but making the position very clear by letters dated 25-3-1990 and 14-5-1990. Ld. Advocate further argued that when the letter dated 14-5-1990 was written it was accepted by the Department and consented. He stated that rules no where provide that declaration cannot be filed in the manner done by the appellants. The appellants have always been indicating in the classification list that they would be availing exemption of Rs. 20 lakhs and thereafter Modvat credit immediately on completion of duty exemption clearances allowed under Notification 175/86-C.E., dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing cleared under nil rate of duty under Notification 175/86-C.E., dated 1-3-1986, the procedure adopted by the appellants was not correct. He reiterated all the arguments adopted by the Collector (Appeals) in his order. 7. After hearing the arguments of both sides and considering the pleas made by them in their arguments as well as in the Memo. of Appeal, we find that a declaration was made by the appellants in their classification list dated 1-4-1990 that they would be availing Modvat credit of duty as soon as they exceed exemption limit of Rs. 20 lakhs/Rs. 30 lakhs also referring that they had already filed a declaration on 27-3-1989. An intimation was also filed by the appellants on 14-5-1990. Appellants classification list effective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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