9911796707
TMI Blog2002 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... (input) which was used for the manufacture of their final product namely Double Multiple (Folded) Crimped Yarn falling under Chapter sub-heading 5402.62. The department, by show-cause notice dated 25-06-1999, proposed to deny the credit on the ground that the input and final products had not been declared under Rule 57G. The department also proposed to disallow Modvat credit amounting to a little over Rs. 2.50 lakhs, which was taken on inputs during the above period on the basis of original copy (buyer s copy) of invoice which was held to be an invalid document for the purpose of availment of Modvat credit. Alleging that the appellants had suppressed and mis-stated material facts before the department with intent to evade payment of duty, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods, learned Counsel submitted that the difference was immaterial and inconsequential for the availment of Modvat credit on the input inasmuch as the department had no case that the input was not received and utilised in the manufacture of final product in the appellants factory and there was no dispute of the duty-paid nature of the goods. According to the learned Counsel, minor shortcoming in the description of input and final product in the declaration under Rule 57G was by itself no valid ground for denial of Modvat credit on the goods. In this connection, learned Counsel relied on the Board s Circular No. 441/7/99-CX., dated 23-2-1999 as also on the Tribunal s Larger Bench decision in Kamakhya Steels (P) Ltd. v. CCE, Meerut - 2000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns that they would be availing Modvat credit on the inputs under Rule 57A. Thus all the relevant materials were before the department and none was suppressed. Counsel further submitted that, as the appellants did not stand to gain anything by not making the correct description of the input on final product and by not providing the exact tariff entry in their Modvat declaration, intent to evade payment of duty could not be attributed to them and the extended period of limitation could not be invoked. In this connection, Counsel relied on the following decisions of the Tribunal : (1) S. Subramanyan Co. v. CCE - 1992 (62) E.L.T. 547; (2) Vikrant Televisions (India) Pvt. Ltd. v. CCE - 1993 (64) E.L.T. 339. 4. Regarding the Modvat credit dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in the declaration cannot be said to be substantially different from the tariff description. We further note, in respect of the tariff chapter heading for input, there is no discrepancy whatsoever between the 57G declaration and the 52A invoice. The Revenue has no dispute regarding the duty-paid nature of the input, nor do they have a case that the input was not received and utilised in the appellants factory in the manufacture of the final product. In this context, we note, the Board s circular cited by the learned Counsel would squarely apply. That circular was issued in February, 1999. The show cause notice was issued when the circular was very much in force and binding on the Commissioner who issued the notice. According to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exists in the appellants case. The demand for recovery of the credit amount as raised in the show cause notice dated 25-6-1999 in relation to the period April, 1991 to May, 1997 is, therefore, clearly barred by limitation. This finding is equally applicable to the Modvat credit taken on the strength of original copy of invoice. The ratio of the Tribunal s decisions in the cases of Vikrant Televisions (supra) and S. Subramanyan Co. (supra) appears to be supportive of our finding. In the result, the entire credit in question is admissible to the party. Consequently the order of confiscation (with redemption fine) and also the order of penalty will be vacated. 7. In the result, the impugned order is set aside and the appeal is allowed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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