9911796707
TMI Blog1996 (3) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... t entry for Rs 1,96,748.41 in the RG 23A Part II and the Modvat credit taken by them was deemed Modvat credit based on the orders of the Government of India bearing F. No. 342/1/88/-TRU, dated 1-3-1989 under which purchase made in respect of goods falling under Heading 72.13 were eligible for deemed credit facility without production of gate pass etc. as prescribed under Rule 57G of the Central Excise Rules, 1944 evidencing payment of duty. The deemed credit taken by them was after withdrawal of deemed credit facility on 1-3-1986 by another order of the Government of India. The lower appellate authority has held that since deemed Modvat credit was taken after issue of order withdrawing the facility, they would not be eligible for this credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t credit after the receipt of the goods on account of procedural requirements under the Modvat Scheme as incorporated in the rules are satisfied. He in this connection cited the judgment of the Tribunal in the case of Amal Rasayan Ltd. v. CCE reported in 1993 (68) E.L.T. 446 and also in the case of CCE v. Premier Cables Co. Ltd. reported in 1991 (56) E.L.T. 853. He placed reliance in the case Amal Rasayan Ltd. Para 4 to 8 of the said judgment are reproduced below for convenience of reference : 4. Shri Willingdon Christian, the Ld. Adv. for the Respondents however, submitted that there is no issue of law arising out of the order of this Bench and that the defect has always been treated as rectifiable. 5. Considering the submissions made, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rules can be held and technicalities could not be brought into play to deny the substantive right given. This is what has been held by this Bench in its impugned order. The main question to be looked into is whether the inputs covered by the G.P.1s have been actually received and utilised in the manufacture of the specified final products. 8. With the legal position being clear, the probable doubt raised by the applicant cannot be sustained and when the other aspects indicate contrary, the alleged issue of law could not be considered to be arising out of the order. References are meant to be made only when some alternate interpretation is probable and here no such probable alternate interpretation seems to be existing. Therefore, there do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as prescribed under Central Excise Rules and also maintained by the assessees would be available and it should not be difficult for the authorities to correlate the goods with the gate passes. In any case if the assessees fail to correlate the credit taken with the Gate passes under which the goods which entered the factory, the authorities are free to take action under Rule 57-I of the Central Excise Rules for recovery of the credit wrongly taken. We do not see as to how the interests of the Revenue are prejudiced if the assessees choose to take the credit after a lapse of time after the date of receipt of the goods inside the factory. It is in fact the assessees who will be foregoing the benefit of the credit in case they choose to tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57G for Modvat purposes and they awaited receipt of gate pass which finally did not come. It was therefore on a later point of time on 20-9-1989 they took deemed Modvat credit which was available in terms of the Government of India order dated 7-4-1986 under which this facility was allowed, after this facility had been withdrawn by another order of the Government of India dated 1-3-1989. The CCE (Appeals) has held that since the credit was taken after the facility was withdrawn the benefit would not be available to the appellants. We observe that the appellants eligibility to take Modvat credit is with reference to the date on which the inputs have been received in the factory. The goods were not accompanied by necessary gate pass under Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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