9911796707
TMI Blog1998 (5) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the amount of duty taken credit under Rule 57A of the Rules and imposing penalty of Rs. 5,000/- under Rule 173Q(1) of the Rules. 2. Appellant, engaged in manufacture of Pharmaceutical Sutures was purchasing locally and importing inputs such as gut, chemicals and needles. Appellant being entitled to the benefit of exemption under Notification No. 1/93 was availing the benefit of exemption from payment of Central Excise duty on the finished product, till the limit of value of clearance of Rs. 30 lacs was reached on 8-3-1995. On 9-3-1995, appellant submitted a letter to the proper Officer stating that with effect from that date Central Excise duty would be paid on the finished product and Modvat credit will be availed on the respective r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h inputs are lying in stock, or are received in the factory after filing the declaration made under Rule 57G, or (b) such inputs are used in the manufacture of final products which are cleared from the factory after filing the declaration made under Rule 57G, and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification." (4) A manufacturer who has filed a declaration under sub-rule (1B) or sub-rule (3) may, after obtaining the dated acknowledgement of aforesaid, take credit of the duty paid on the inputs received by him : Provided that no credit shall be taken unless the inputs were received in the factory under the cover of a Gate Pass, an ARI, a bill of entry or any other do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a declaration under Rule 57H(1B) stating that the inputs are lying in stock or the inputs were under manufacture after filing declaration under Rule 57G. It is true as stated by the learned Counsel for the appellant that the Tribunal has in some cases looked into the spirit of Rule 57G of the Rules and the requirement of declaration under that Rule and granted relief in some cases even where declaration had not been filed. According to the learned Counsel, the same approach should be adopted in the present case also. The cases referred to are those in which the assessee substantially complied with the requirement of filing declaration, though it was not regular or proper or in cases where it was impossible to file a declaration and the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the failure of the appellant to file declaration under Rule 57H cannot be taken lightly or condoned. 6. According to the learned Counsel for the appellant, two letters sent by the appellant on 8th 9th March, 1995 to the Assistant Collector would serve the purpose of declaration under Rule 57H. We have perused the contents of the letters. The letters did not put the Assistant Collector on notice of the existence of stock of raw materials; nor did it declare the exact quantity and variety of raw materials. The letters also did not express any readiness for verification of the stock as was expressed in the case decided in Bajaj Sevashram Limited reported in 1996 (87) E.L.T. 726 (Tribunal), on which learned Counsel place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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