9911796707
TMI Blog1999 (5) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of Plastic Bags and sacks with effect from 16-3-1995. The Respondents filed a declaration for availing of Modvat credit on such sacks under Rule 57G on 6-7-1995. Further, they, in their letter dated 4-9-1995, requested for allowance of Modvat Credit on sacks with effect from 1-4-1995 which was permitted to them by the Assistant Commissioner under letter dated 18-3-1996 condoning the delay in filing the declaration under Rule 57G. The Respondents availed total Modvat Credit of Rs. 65,857.95 ps. which included the credit in respect of these sacks lying in stock with them as on 31-3-1995. The Assistant Commissioner disallowed the Modvat Credit of Rs. 20,653,95 ps. pertaining to the stock of sacks lying on 31-3-1995 holding that the Resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or after 15-4-1995. He finally submitted that the Respondent s request dated 8-1-1997 for allowing the credit under Rule 57H was rejected by the Assistant Commissioner in view of the provisions of Rule 57H. 4. Countering the arguments, Shri S.D. Gaur, ld. Advocate for the Respondents, submitted that once the delay has been condoned by the Assistant Commissioner the same would cover all the delays in filing the declaration whether under Rule 57G or 57H. He further submitted that no permission was required to be obtained from the Assistant Commissioner for availing the Modvat credit under Rule 57H(1B) of the Central Excise Rules. He also contended that no time limit for filing the declaration has been provided under Rule 57H(1B) and as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock of raw materials is lying with the Assessee or that inputs are used in the manufacture of final product clearing from the factory after filing the declaration made under Rule 57G. The purpose of declaration is to intimate the Assistant Commissioner of this circumstance so that he may proceed to the factory and verify whether the stock as declared is in existence or has been utilised as declared. The failure to file this declaration successfully disabled the Assistant Commissioner from proceeding to the factory and verifying the stock. The Tribunal further held that the failure of the appellants to file declaration under Rule 57H cannot be taken lightly or condoned. Therefore the denial of the benefit of Modvat Credit to the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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