9911796707
TMI Blog1995 (1) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... ector of Central Excise, Ranchi. By his aforesaid order, the Assistant Collector had confirmed duty demand of Rs. 8046.87 under the provisions of Section 11A of Central Excises and Salt Act, 1944 read with Rule 57-I of Central Excise Rules, 1944. He had done so by holding them to be not entitled for availing Modvat credit on their inputs, lapping powder, adhesive tape and Methanol as they had not given a proper declaration giving details of heading, sub-heading and full description thereof in their declaration. Their appeal was allowed by Collector (Appeals) on the ground that the deficiency in the declaration ought to have been pointed out earlier rather than waiting for five years and denying credit. It had not been alleged or substantiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cember, 1991 to March 1992. The observation of Collector (Appeals) that the party alone cannot be held responsible for procedural lapses in the declaration at the time of introduction of Modvat credit as it was in the knowledge of the Department for seven years is wrong as res judicata is not applicable in Revenue matters. The demand in this case was within six months and not the extended period of five years. It has then been pointed out that the Tribunal had, in the following cases, held that the Modvat Credit was not admissible due to description being incomplete and broad and not specific. Non-specification of the inputs is not a condonable lapse or irregularity. (1) Aluminium Industries v. Collector of Central Excise - 1990 (47) E.L. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Shri P.K. Das, learned Advocate appearing for the Respondents submitted his reply to the arguments advanced by the learned Departmental Representative. He stated that proceedings had been initiated earlier also in respect of their inputs, seeking to disallow Modvat credit. The Assistant Collector of Central Excise, Ranchi had, vide his Order No. 60/90, dated 29-6-1990, decided the matter in their favour holding that Adhesive Tape and Silicon Carbide Grains are eligible for Modvat. The Department challenged this before the Collector of Central Excise (Appeals), who allowed the appeal partly vide his Order-in-Appeal dated 4-12-1991. This was challenged by them before the Tribunal and their appeal was decided on merits in their favour vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey had subsequently raised the question of vague description. That would mean that the description had been accepted earlier and objection was only that the goods in question were tools and hence not eligible for Modvat benefit. Having taken that stand it will not be open to the Department to raise the plea later on that the description was vague. Shri Das concluded his argument with the plea that the Appeal of the Department be dismissed. 5. I have considered the submissions. I have perused the record. As regards the plea of denial of natural justice raised by them and which was accepted by the lower appellate authority, I find that, as pointed out by the Collector (Appeals) himself in his impugned order. What was supplemened in the corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of issue of the show cause notice, the same is not barred by limitation. 6. On the question of the description being vague, it was submitted by Shri Ghosh that what they had declared by way of description of the goods was only the Chapter Heading. These are very general and not specific. He added that it has clearly been held by the Tribunal in the decisions referred to by the Collector in his appeal that there should be specific description of the goods, even if the Tariff heading given is not correct. This contention is correct and such has been the trend of the decisions. I find that the description given of the inputs is as per the Tariff Chapter titles. Thus, for one of the items Methanol, the description given has to be taken as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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