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TMI Blog1996 (3) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... les. At the time of giving such a declaration they were having in their stock a certain quantity of glass bottles for which an application under Rule 57H of the Central Excise Rules had also been filed on the same day. They took the credit relating to such glass bottles on 26-9-1987 and utilised an amount of Rs. 2,17,901.48 before 30-9-1987 which represented part of the amount of credit which they had claimed under Rule 57H, as stated above. A show cause notice was issued by the Superintendent against their having taken the credit on the ground that they had not obtained the prior permission of the Assistant Collector. The case was adjudicated by the Assistant Collector and the order passed by him was upheld by the Collector of Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior permission is not prescribed in the Rule. In another decision reported in 1996 (81) E.L.T. 174 (Tri.) = 1996 (12) RLT 91 in the case of Safe Fire Services v. Commissioner of Central Excise, Bombay - I the Tribunal had held that taking of Modvat credit under Rule 57H of Central Excise Rules, 1944 without the permission of the Assistant Collector may invite penal action but substantive benefit of the credit itself cannot be denied. He also referred to another such decision wherein it had also been held that taking of credit under the provisions of Rule 57H does not require the prior permission of the Assistant Collector. It only requires a permission and such permission could be granted by the authority subsequently also which would regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the language used in the said rule is that the Assistant Collector may allow credit as provided for therein, the expression may allow does not give that authority the power to either refuse the said permission without valid reasons or for not deciding the matter within a reasonable time. In fact, in the present case it has to be stated by the learned counsel that the permission applied for under Rule 57H vide their application dated 25-9-1987 has still not been granted. In the circumstances, if they avail the credit in anticipation of the grant of such permission that cannot be called into question particularly where no decision has been taken refusing the permission by the Assistant Collector. From the facts of the case as come out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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