9911796707
TMI Blog2000 (2) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... g under Chapter Nos. 28 and 29 of the Schedule to Central Excise Tariff Act, 1985. Superintendent Central Excise Range VI Division Kalyan issued a show cause notice on 3-5-1993 alleging contravention of Rule 57G of Central Excise Act, that raw material of 1510.70 kgs Iodine is received as inputs in the appellant's factory for the manufacture of final product Iodine IP/BP/USP and taken Modvat credit of Rs. 90,247.77 ps. under Rule 57A without declaring the final product in the declaration and exported Iodine/IP/BP/USP under bond of the quantity 500 kgs and 1000 kgs as 20-10-1992, and 29-10-1992 respectively, and calling upon to show cause why the above amount should not be disallowed and recovered from them under Rule 57-I(1)(i) read with Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. JDR has argued that admittedly the declaration was not filed and dated acknowledgement was not obtained from the Divisional Officer, before the availment of Modvat credit. Classification List declaration is not relevant. Subsequent filing of declaration for the final product by the appellant supports the case of department, Rule 57G is a mandatory provision. To avail the benefit of Modvat credit, compliance of it is a must. It is a substantial requirement. Modvat credit is a beneficial scheme to the manufactures, subject to compliance of requirement of provisions. Failure to do so deprives them of that benefit. Huge amount of credit is taken by appellant, without performing the statutory obligation. This cannot be lightly viewed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal provisions referred above and as contended by the Ld. JDR the orders of lower authorities hold good. But, the appellant has relied on series of orders of Tribunal from 1955 to 1999 on the availment of Modvat credit in different circumstances, holding that "subject to verification by the lower authorities that inputs received is actually used in the manufacture of final product, the failure to file declaration under Rule 57G of Central Excise Rules is not bar to avail the credit" as per 1999 (106) E.L.T. 468 (T) in the case of Aromate (Cal) Private Ltd. v. Collector of Central Excise. The ld. JDR has not controverted this stand. Here in this case declaration is filed subsequently, after the availment of Modvat 1996 (81) E.L.T. 563 (T) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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