9911796707
TMI Blog2002 (6) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the period from 9/91 to 2/94, they used to receive cushions from M/s. Roloform Polymers (RFP for short) under Rule 57F(3) procedure. During a visit by the officers of the Department to RFP on 8-2-94, it was noticed that procedure laid down under Rule 57F(3) was not strictly followed and that apart from the raw materials sent by the respondent-assessee, the RFP had utilized their own raw material without payment of duty. Thereupon proceedings were initiated against RFP and the said RFP paid a sum of Rs. 4,27,066/- under TR 6 challan for the period from 1-4-93 to 26-6-93. The matter was adjudicated by the Commissioner of Central Excise vide order dated 17-11-95. On receipt of the said order, the respondent-assessee herein vide their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that even under Rule 57E where no limitation is prescribed, six months period will be a reasonable period of limitation in the facts and circumstances of the case which should be reckoned from the date of receipt of goods in the factory for taking Modvat credit. In the instant case the goods had been received between 9/91 and 2/94 and the 57E application was filed only on 13-3-96. Therefore, following the ratio of the Tribunal ruling, the credit in terms of Rule 57E certificate is not admissible. 3. The learned DR reiterated the grounds taken in the appeal and sought for allowing the Revenue appeal. 4. Shri R. Raghavan, learned Counsel on the other hand submitted that the impugned order-in-appeal is a well reasoned order and sough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the accounts maintained under Rule 9 or sub-rule (1) of Rule 173G, or if such adjustment is not possible for any reason, by cash recovery from or, as the case may be, refund to the manufacturer availing of the credit under Rule 57A. On a reading of the above rules, it is clear that this rule applies to variations of duty occurring due to any reason and occurring subsequent to inputs which have already been received and on which credit has already been availed. In other words Rule 57E allows variation of credit already taken. It is an admitted position that in the present case, no credit was taken on receipt of input as duty was evaded by the supplier of the input M/s. RFP and the duty was paid on detection by the Department and they h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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