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TMI Blog1994 (1) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... lared final product - Bare Aluminium Wire of thickness 3.25 mm or more should be debited under Rule 57-I in RG-23A Pt. II or in PLA within 10 days of the receipt of this order. 2. Briefly stated the facts of the case are that the appellant filed a declaration under Rule 57G on 14-3-1986 in which they did not declare bare aluminium wire of thickness 3.25 mm or more as their final product. However they availed a credit of Rs. 60,389.58 on 22.471 MTs of inputs namely aluminium wire rods. As the appellant could not satisfactorily explain, a Show Cause Notice was issued to him. In reply to the Show Cause Notice, the appellant submitted that the modvat scheme was quite new; that they were not conversant about the declaration; that in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed product. The ld. Advocate for the appellant prayed that the orders of the Asstt. Collector and the Appellate Collector disallowing modvat credit of Rs. 60,389.58 may kindly be set aside. 4. Shri B.D. Bhagat, the ld. JDR appearing for the respondent submitted that appropriate declaration in respect of aluminium bare wire of thickness 3.25 mm or more was not filed; that filing of declaration under Rule 57G of the Central Excise Rules, 1944 was mandatory; that non-filing of the declaration is not a technical lapse or a procedural formality; that the case cited by the appellant about outright rejection of filing the declaration in the form of a letter is not relevant to the present case as the facts in the two cases are different. Reiterat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the said declaration. On examination of the essential ingredients of this Rule, I find that the rule does not only say that a declaration may be filed but lays down `shall file a declaration. The rule also prescribed `obtain a dated acknowledgment of the said declaration. From these two requirements of the rule it may very clearly be said that the requirement of the rule is not just a technical formality or a procedural requirement but the use of the words in the rule clearly brings out that modvat credit can be taken only after filing the declaration and obtaining acknowledgment thereof. Thus the requirement of the rule is substantive and not procedural or a technical one. As this requirement of the rule admittedly was not compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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