9911796707
TMI Blog1996 (6) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under Section AA of Chapter V of the Central Excise Rules, 1944. They filed declaration under Rule 57G of the Rules declaring Billets as inputs, on 13-8-1993 and obtained the dated acknowledgment. The department found that the assessee took the Modvat Credit of Rs. 53,810 on 12-8-1993 on billets weighing 53.810 MT said to have been lying in their factory premises immediately before filing of the declaration and without making any application to the adjudicational Assistant Collector of Central Excise, seeking permission under Rule 57H of the Rules. The propriety of which was objected to by the Department. Therefore, proceedings for recovery of the said credit were initiated and a regular show cause notice was issued and the same was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stinguishable as the filing of declaration in transitional provisions of Rule 57H is not mandatory and so also to obtain prior permission for taking the Credit of the duty paid on inputs received by the manufacturer immediately before obtaining dated acknowledgment of the delcaration made under Rule 57G. All that was required in the transitional provisions of Rule 57H was for the Assistant Collector to satisfy that : (a) such inputs are lying in stock, or are received in the factory, on or after the 16th day of March, 1995, or (b) such inputs are used in the manufacture or packing of final products which are cleared from the factory on or after the 16th day of March, 1995, and that no credit has been taken by the manufacturer in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not open for the authorities to raise a demand after more than two years without any allegation of wilful misstatement, collusion or suppression in terms of the proviso to Section 11A which, it is claimed was applicable to the demands issued under Rule 57-I. We do not think it necessary, for us to go into this aspect because the appeal can be decided on the other plea which we find is acceptable under the law." 6. In the present case, the appellants have opted for availing the facility of the Modvat Credit on their inputs under Rule 57A of the Central Excise Rules, while opting for the first time for the Modvat without filing their Modvat declaration under Rule 57G on 13-8-1993 on dated acknowledgment. The party was holding the stock of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees were to wait for the prior permission, the result would be that the assessee has to endlessly wait for prior permission which results in stoppage of production and causing serious consequences and losses to the assessee. Therefore, the transitional provisions under Rule 57H gives laxity for the assessee to utilise the inputs lying in stocks or received in the factory after filing the declaration made under Rule 57G or such inputs are used in the manufacture of final products which are cleared from the factory on or after the first day of March,1987. In this case the inputs were lying in stock and such inputs have been utilised in the manufacture of final product and also that the final products have been cleared only after the dated ack ..... X X X X Extracts X X X X X X X X Extracts X X X X
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