9911796707
TMI Blog1997 (5) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, Modvat credit, if availed, can be reversed without complying with the statutory requirements of Rule 57-I of Central Excise Rules, 1944, and without giving a valid notice and an opportunity of making a representation and giving a personal hearing. (2) Whether in the facts and circumstances of the case Modvat credit can be denied when the inputs and the final products are duly covered by Modvat Scheme and the inputs are utilised in relation to the manufacturing of final product simply because of the wrong classification of inputs under the Central Excise Tariff by the supplier." 2. The facts leading to the present reference application are that applicants are engaged in the manufacture of synthetic rubber. They were procuring bags f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit, they have rightly been treated by the lower appellate authority as notice in the eye of law and hence the reference application. 3. Shri S.L. Sethi, ld. Counsel appearing for the applicant submits that the two points of law raised in the application arise out of the Tribunal order inasmuch as the Tribunal treated the communication dated 21-2-1990 and subsequent communication as Show Cause Notice. He submits that on this issue there are divergent views of the various Benches of the Tribunal. He submits that Rule 57-I which covers the recovery and realisation of Modvat credit wrongly taken clearly stipulates the issue of a Show Cause Notice by the proper officer. Ld. Counsel submitted that for the purposes of Rule 57-I the proper offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds on which the Department directed reversal of credit. We have also seen the para 3 of communication dated 21-2-1990 which is reproduced earlier. We find that Rule 57-I is specific as it talks of service of a Show Cause Notice and further provides that after giving an opportunity to the assessee to take a decision. In the instant case, therefore, a point of law arises in so far as communication dated 21-2-1990 and 27-12-1990 are concerned. Whether the communication dated 21-2-1990 and 27-12-1990 asking appellants to reverse the credit is a notice to show cause as contemplated in Rule 57-I of the Central Excise Rules, 1944." Examining the second point alleged to be a point of law by the applicant, we find that that is only a point of fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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