9911796707
TMI Blog2000 (7) TMI 438X X X X Extracts X X X X X X X X Extracts X X X X ..... apter headings 84.51, 84.20, 84.43 of Tariff Act under Central Excise Licence Declaration of inputs to be brought by them under Modvat scheme was filed on 5-5-1986, which was approved by Assistant Collector, Divn. III on 28-8-1986, from the date of filing declaration. Revised declaration was filed in 22-1-1988 giving detail description of inputs by the appellant. While assessing RT12 returns and checking of documents, such as original PLA, GPS, RG23A Part I Part II, and RT12 returns by the range Superintendent it was noticed that appellant had taken credits of duty on inputs of Rs. 75,031.50 not declared by them under Modvat such as Reduction Gear/Spares Warm Gear as against declared Reduction Gear Box both falling under Chapter 84.43, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and order-in-original was set aside under the Impugned order. Hence this appeal. 2. In support of the appeal, Sri. Paresh Dave, Advocate, has filed written submissions on 26-2-1997. He has argued that discrepancy in inputs were noticed in 1987 and on 1-2-88 Superintendent asked to debit the credit taken, and no proceedings prior to it, show cause notice was issued on 14-2-1989 for the period 29-4-1987 to 24-12-1987. Demand is clearly time barred. On behalf of Respondent, it is submitted that, in view of 1-2-1988 letter containing the demand, there is no time bar. In the reply it is urged that 5 credits are admitted not in time. There is no change in classification. Appeal has to be allowed. 3. Points for consideration are whether (a) Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch made the demand, and Impugned order has set it aside, and allowed the appeal. As per the relief in the appeal by department, before Collector (Appeals) under EA2, Column No. 6, original orders to be set aside, and thereby recovering Modvat credit is allowed. By Impugned order it is granted. As discussed above, it is not proper and correct. So the Impugned order cannot stand. Modvat credit disallowed confines only to Rs. 40,421.50, even if the Impugned order is upheld. In the absence of any specific relief granted in the Impugned order, as contended by appellant, no demand and confirmation arises. 5. Now, considering the case of appellant in its reply to show cause notice, written submissions, appeal memorandum and the letter dated 1-2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding, the point raised whether the credit taken on inputs not approved by department is admissible, does not survive for consideration, apart from other contentions raised as to authorization issued to file appeal by Judicial Collector and maintainability of appeal in the absence of separate show cause notice, for demand recovery and its confirmation. But in the alternative it is also considered. As considered above, the review order and Impugned order does not challenge the 1st item reduction gear/spares warm gear and reduction of gear box. So the Impugned Order can retaliate to that item. In the absence of it,order-in-original has to stand in that regard under which demand is dropped and show cause notice is discharged. Impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heading 84.51; as bought out item to be purchased to use in machinery. As per 25-1-88 revised declaration, for Cloth Guider/Frame Detwister/Spares item at Sr. No.27 is divided as 27A 27B under chapter heading 84.51 - Spares CI MS Rolls. S.S. Rolls, Shaft, S.S., M.S. Thaks, Hood, S.S. Cylinder, CI MS channel, S.S. M.S. Pin, CI MS Walls, CI Nip, Hylam Bushes, Chain wheel, Worm wheel, Brake Drum, Padestal bracket and Float Dryer, Jigger Parts etc. As per show cause notice Modvat credit is availed on Jigger Spare, Spares for Jigger spares, Spares for Machine Spares, Range - Print Washer, Adj. Support with guider spare Rope twister, Adj. Support sooper spares, S.S. tanke, with common Chapter Heading of 84.51 for them and Cloth Guider/Fram ..... X X X X Extracts X X X X X X X X Extracts X X X X
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