9911796707
TMI Blog1998 (1) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... t scheme in March, 1986 it filed a declaration under Rule 57G for various inputs used in or in relation to the manufacture of the final products. This declaration was followed by further declarations. One among these being a declaration of 27th January, 1987. In this declaration the assessee mentioned polythene powder (atomthene) as an input. This input was not mentioned in the earlier declaration. In a further declaration of 17th May, 1988, in moulding grade plastic powder was declared as input. In February, 1991 the Department issued notice to the assessee proposing to recover credit taken of the duty paid on moulding grade plastic powder, between 19th March, 1986 and 16th May, 1988 i.e. from the date of the first declaration till the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them for the following reasons. The reason for which the Collector has held the demand to be barred by limitation is not questioned as being incorrect in the Department s appeal. The contention in the appeal is that the assessee did not make a true and complete disclosure of relevant information because it did not declare in full amount the part of use of the raw materials as inputs . The appeal does not question the Collector s finding that the assessee had submitted to the Department the monthly extracts of the RG 23A register and this indicated the Department of the part that the input was declared and credit taken on it. The returns are specifically prescribed for the purposes of credit and debit of Modvat account. By reading these r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were made when the Modvat procedure was new, as requirements as to declaration had not settled into a definite form, and there was considerable doubt of the trade and the Department, with regard to this and many other matters relating to the scheme. The Modvat procedure itself is one that is beneficial to an assessee, in that it reduces the duty burden on the finished products to the extent of duty paid on the inputs. A manufacturer of finished products would therefore not stand to gain by failing to file a proper declaration of the inputs. The position would of course be different in cases where there is an intention to take credit of the duty not paid, or on inputs not received. There is however no such allegation against the assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
