9911796707
TMI Blog2001 (7) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. J.C.T. Ltd. has filed this appeal against Order-in-Appeal No. 57/DIR/P PR/2000, dated 13-6-2000 in which Commissioner (Appeals) has confirmed the disallowance of Modvat credit and penalty imposed on them. 2. Shri K.K. Anand, ld. Advocate submitted that the appellants manufacture cotton yarn and fabrics and man-made yarn and fabrics and avail of Modvat credit of the duty paid on the inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed the Modvat credit and imposed a penalty of Rs. 10,000/- holding that the Appellants had taken Modvat credit after expiry of six months from the date of invoice; that the Asstt. Commissioner did not condone the delay in filing the declaration, they being an old assessee and well aware of Central Excise procedure. The ld. Advocate further submitted that the case for condonation of delay ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, Shri J. Singh, ld. DR submitted that the Modvat credit was taken on 29-11-1995 when the proviso to Rule 57G has been inserted by Notification No. 28/95, dated 29-6-1995 and as such the said provisions are applicable; that the Asstt. Commissioner did not find the reasons advanced by the appellants for condoning the delay in filing the declarations satisfactory, that the penalty has been rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities that these conditions were not fulfilled in the present matter. The appellants in their letter dated 14-8-1995 has explained the reasons for not filing the declaration before the receipt of the impugned chemical. According to them, the Purchase Department, on the requirement of the Spinning Department, purchased the specific chemical (SPACOSTAT) and when the appellants realised that decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndoned, they are eligible to take the credit in RG23A Part-II. However, penalty is imposable on the appellants as they took the credit before the condonation of the delay. I, therefore, hold that the appellants are eligible to avail of the Modvat credit and they are liable to penalty which is, however, reduced to Rs. 5,000/-. Thus, appeal is partly allowed. - - TaxTMI - TMITax - Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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