9911796707
TMI Blog1998 (2) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under Chapter 28 and were availing the facility of Modvat credit on HDPE Sacks (Bags) falling under Chapter 39 of the Central Excise Tariff Act, 1985 used for packaging the final products after submitting a due declaration as contemplated under the Rules. They were served with a show cause notice dated 3-2-1993. The appellants submitted a suitably reply refuting all the allegations. 3. It was his submission that the impugned order is not based on correct appreciation of the facts of the case and law on the subject. The entire demands is time barred. The notice has been issued on 3-2-1993 requiring the appellants to repay back Modvat credit availed of during the period November, 1990 to March, 1992. There was no mis-statement of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 57A does not include bags or sacks made out of fabric (whether or not coated, covered or laminated with any other material) woven from strips or tapes of plastics. The appellants in their reply to show cause notice have not disputed that they availed Modvat credit in respect of HDPE sacks woven from strips or tapes of plastics. The logic of their argument has nowhere been explained and is, therefore, not acceptable and there was no need of any chemical examination of such bags since it is not the case of the party that such bags were not HDPE Sacks. The amended Rule 57A as from 17-9-1990 was very clear about the fact that no Modvat credit was admissible in respect of HDPE bags and sacks. The party's contention that the entire demand is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrespective of whether they had filed or not filed a fresh declaration. In the above circumstances, the question of interpretation of notification and question of time bar are linked with the plea of bona fide belief and as to how far the applicants were able to show that they had kept the Department posted. In this connection, we find that the notification is explicit and clear and the Department is correct in pointing out that in view of the amended Rule 57A with effect from 17-9-1990, the Modvat benefit was not available in respect of HDPE bags and sacks and there is no scope for doubt or dispute about it and therefore, the appellants should have, in the normal course, stopped availing the benefit thereon after this date. However, they c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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