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TMI Blog1997 (1) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... on the inputs used in the manufacture of tyre retreading equipments. They filed a declaration on 20-3-1986 which was acknowledged on 27-3-1986. Subsequently the appellants filed revised declaration on 16-6-1987 and 11-11-1987. On scrutiny of the declaration it was alleged by the department that Modvat credit was wrongly availed by the appellants as the inputs were not properly declared. A show cause notice was issued to the appellants on 27-2-1988 asking them to explain as to why the Modvat credit taken by them during the period from 6-5-1986 to 29-5-1987 should not be denied to them and why the amount should not be recovered from them. In reply to the show cause notice the appellants submitted that the inputs not being declared alleged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the new scheme of modvat therefore some mistakes were bound to happen. He submits that having regard to these difficulties the Board under its Circular No. F. No. 263/17/87-CX.8, dated 9-2-1988 clarified that the matter has been examined by the Board and it has been decided that the declaration of the description and sub-headings for both the inputs and final product is essential for availing Modvat credit. Therefore this requirement cannot be dispensed with. However the past cases may be decided by the Collectors on merits keeping in view the fact that if the private/statutory records maintained by the assessee show that inputs have been received and used in the manufacture of the final product and declaration giving broad descriptions/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 6-10-1988 was examined by the larger Bench of this Tribunal in the case of Brakes India Limited [1996 (15) RLT 68 (CEGAT-SRB)] which came to the conclusion that even under Rule 57-I where no limit is prescribed six months period is reasonable period in the facts and circumstances of the case and that it should be counted from the date of taking the credit after the receipt of the goods in the factory. For this purpose the larger bench of this Tribunal relied on the decision in the case of M/s. Citedal Fine Pharmaceuticals - 1989 (42) E.L.T. 515 (S.C.). The learned Counsel submits that in so far as limitation is concerned the facts of the case of the appellants are exactly similar to those considered by the larger Bench and therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time limit then prescribed under the rule. The ld. JDR therefore submits that both on merits and limitation the case is against the appellants. 5. Heard the submissions of both sides. I find that two aspects of the case are before me for determination. The first aspect is on merits whether imported items were described broadly or were not described in the declaration. From the evidence placed before me as also the contentions of the appellants before the lower authorities in reply to the show cause notice was that description of the goods in the declaration filed under Rule 57G was broad; that it was a broad declaration because the goods were known by different names or trade names and were not described as such in the declaration. I als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the inputs in the manufacture of the final product is not in dispute therefore I agree with the contentions of the learned Counsel that their case is fully covered by the clarification given by the Central Board of Excise Customs dated 9-8-1988. I also observe that similar issue came up before the Tribunal in the case of Rajasthan Transformers Switchgears [1995 (7) RLT 645] wherein this Tribunal by a majority judgment held that Pre-February, 1988 cases are to be decided in the light of Board s instructions and various trade notices issued and that Modvat credit was allowable even if description is broad and if the private records maintained by the assessee show that the inputs were utilised in the manufacture. I find in the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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