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TMI Blog2003 (2) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... after taking Modvat credit of the duty paid thereon) from their factory to job worker s premises under Rule 57F(4) for further processing and return. While doing so, in some instances, they debited an amount equal to the Modvat credit taken, under sub-rule (6) of Rule 57F. When, in such cases, the processed inputs were returned by the job worker and received by the appellants in their factory for the manufacture of final product, the appellants took recredit of the entire amount which was debited at the time of dispatch of the inputs to job worker. The original authority found that excess credit of an amount of Rs. 17,438/- was so taken by the appellants in excess of 10% of the value of the goods permitted under sub-rule (7) read with sub-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rule (7). The appellants have relied on the Tribunal s decision in CCE v. SAIL [2001 (137) E.L.T. 457 (T) = 2000 (40) RLT 1064]. In respect of the credit of Rs. 32,364/-, the appellants have contended that it was not permissible to disallow the credit on the ground of the procedural lapse of the processed inputs being received in the appellants factory beyond the period of 60 days. In this connection, they have relied on the decision of the Tribunal in Arunachal Plywood Industries Ltd. v. CCE [1992 (62) E.L.T. 830]. They have also relied on the decision in U.P. Twiga Fibre Glass Ltd. v. CCE [1999 (32) RLT 721]. In respect of the credits of Rs. 4,044/- and Rs. 650/-, the appellants have claimed that these amounts are part of the above a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit on the ground of procedural lapse. The time limit of 60 days was prescribed under sub-rule (11). In any case, it appears from the contentions of the party that it is necessary to look at the relevant provisions of Rule 57F as the Rule stood at the material time. Sub-rules (6) to (11) are the relevant provisions and same are extracted below :- (6) (i) Where a manufacturer removes the inputs as such or in the partially processed form to a place outside his factory for the purposes specified in sub-rule (4), the manufacturer shall do so only after debiting an amount equal to ten percent of the value of such inputs or, as the case may be, the partially processed inputs declared by him on the challan under which such inputs or partially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the manufacturer of final products within a period of sixty days or the extended period, as may be, allowed by the Assistant Commissioner of Central Excise, the manufacturer shall recalculate the amount of actual credit attributable to such inputs or on inputs contained in the partially processed inputs and thereafter he shall adjust the differential amount, if any, after taking into account the amount already debited while sending the inputs or partially processed inputs from his factory. 5. There is no dispute with regard to the removal of the inputs by the appellants to their job workers in terms of sub-rule (4) of Rule 57F for the purpose of certain processing. Sub-rule (4) contemplated return of the processed inputs by the job work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances, the denial of the credit of Rs. 17,438/- on a ground based on sub-rule (6) is not justifiable. If the appellants debited any amount in excess of the prescribed limit of 10% under sub-rule (6) at the time of removal of inputs to job worker, that was only a minor technical defect which was not in any way detrimental to the interests of the Revenue. Had the debit been short of the prescribed limit of 10% of value of the inputs, then only it would have affected the Revenue. That is not the case here. I, therefore, hold that the credit of Rs. 17,438/- taken by the appellants cannot be denied to them. 6. Insofar as the credit of Rs. 32,364/- is concerned, the position is altogether different. Sub-rule (11) read with sub-rule (4) provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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