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TMI Blog1998 (7) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt of the capital goods. Provisions of Rule 57T(1) are that every manufacturer intending to take credit of duty paid on capital goods under Rule 57C shall file a declaration with the Asstt. Commissioner indicating the particulars of the goods, description of the final product manufactured in his factory and such other information as the Asstt. Commissioner may require and shall obtain the dated acknowledgement of the said declaration provided that where the manufacturer was not in a position to make the declaration and makes the declaration subsequently but within a period of one month or such further period as may be allowed by the Asstt. Commissioner for a maximum period of another two months from the date of receipt of the capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey came to know of Notification No. 39/94-C.E. (NT), dated 13-9-1994 late from the fax message received from Indian Woolen Mills Association, Bombay on 22-12-1994 was not found to be sufficient cause. The Notification is dated 13-9-1994 and the Appellants were aware of the Modvat credit on capital goods as they were availing the same. In my view the reasonings given by the Asstt. Commissioner for rejection of the application for condonation of delay is justified as per second proviso to Rule 57T(1) of the Central Excise Rules, 1944. Therefore, there is no merit in the Appeal. Appeal is rejected. 2. Briefly stated, the facts of the case are that the Appellants filed Modvat declarations under Rule 57T for availing credit on capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Modvat credit on capital goods only on 22-12-1994 when they received a Fax message from Indian Woolen Mills Federation. He submitted that when they came to know that Modvat credit was admissible to them, they immediately filed declarations explaining therein the reasons for delay. The ld. Counsel submitted that they filed 44 declarations; that out of these 44 declarations, only 4 declarations were filed beyond a period of 3 months from the date of receipt of the capital goods in the factory. He submitted that all the other declarations were filed within a period of 3 months. 4. The ld. Senior Counsel submitted that proviso under Rule 57T(1) provided that - provided further that where a manufacturer was not in a position to make the decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvat credit on capital goods. He submitted that except in 4 cases, listed at Sl. No. 6, 19, 31 and 32, declarations were filed within three months from the date of receipt of the capital goods in the factory. He submitted that they had fully explained the delay and, therefore, the delay should have been condoned. He submitted that in the circumstances, the impugned order may be set aside and the appeal may be allowed. 5. Shri A.M. Tilak, the ld. JDR submits that the Appellants were not new entrants so as to be ignorant about the issue of Notification No. 39/94, dated 13-9-1994. He submits that the Asstt. Collector of a Division is always aware of the day-to-day activities of a factory and he was the best judge to pass an order on the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at they came to know about this Notification only on receipt of fax message on 22-12-1994 from the Indian Woollen Mills Federation, Bombay. This explanation on examination is found to be satisfactory and should have been accepted as sufficient cause. The Asstt. Collector rejected their claim without examining the facts properly. The finding of the Asstt. Collector that the Appellants were availing this facility in respect of woolen yarn already does not appear to be based on material facts. On careful consideration of the evidence placed on record and the submissions made before us, we find that sufficient cause was shown and therefore, the delay upto a maximum period of 3 months should have been condoned. In this view of the matter, we hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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