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TMI Blog2013 (3) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... g substantial questions of law:- "1. Whether the Commissioner of Appeals and the Appellate Tribunal are right in allowing the credits taken in RG 23A Part II Account after expiry of 6 months from the date of document (Bill of Entry) when there is a provision under Rule 57G (5) of the Central Excise Rules, 1944 stipulating 6 months time limit for taking such credit? 2. Whether the diversion of imported goods in question by M/s.Goodyear India Limited (Importer) to M/s.S.R.F. Limited (Manufacturer) without endorsement on the Bill of Entry by Customs authority for availement of MODVAT Credit of duty under Rule 57G of Central Excise Rules, 1944 is correct as per Board's Circular No.179/13/96 CX dated 29.02.1996." 2. Brief facts:- Respondent M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken Rs. 1 206841/11.02.99 SBR Latex 9022/117 19.02.99 712/03.07.2000 129670.80 2 208224/22.02.99 VPL Fendic 9025/123 06.03.99 713/03.07.2000 219511.90 3 208223/22.02.99 SBR Latex 9025/128 13.03.99 714/03.07.2000 111288.40 4 210445/12.03.99 SBR Latex 9025/141 31.03.99 715/03.07.2000 111158.00 5 206481/09.02.99 Fabric Adhesive 6401/1 21.04.99 716/03.07.2000 217732.60 6 211132/17.03.99 VPL Fendic 3001/1 21.04.99 717/03.07.2000 190926.60 7 210241/11.03.99 Fabric Adhesive 5401/2 21.04.99 718/03.07.2000 193436.00 8 6097/19.03.99 VP Latex 3001/2 21.04.99 719/03.07.2000 148398.00 TOTAL 1322122.30 4. As per Rule 57G of Central Excise Rules 1944, a manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the delay in making the endorsement by the Customs authorities and observed that the Revenue cannot take advantage of their own default. Being aggrieved by the order of the Tribunal, Revenue has preferred this appeal. 8. The core contention of the Revenue in this appeal is that the Respondent-assessee is not entitled to take credit after six months from the date of Bills of Entry in respect of the inputs that were received in the factory. Thus, according to the Revenue, such claim for credit beyond six months is against Rule 57G sub-rule 5 of the Central Excise Rules, 1944. 9. Per contra, the learned counsel appearing for the Respondent contended that even though the Respondent was in possession of the Bills of Entry, the same cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke credit of the duty paid on inputs under rule 57A or rule 57B shall file a declaration with the Assistant Commissioner of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in the said final products and such other information as the said Assistant Commissioner may require, and obtain a dated acknowledgement of the said declaration. (2) A manufacturer who has filed a declaration under sub-rule (1), may after obtaining the acknowledgement aforesaid, take credit of the duty on the inputs received by him. (3) No credit under sub-rule (2), shall be taken by the manufacturer unless the inputs are received in the factory under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry were not endorsed, the Respondent could not take credit since the Circular dated 29.02.1996 requires such endorsement. 14. M/s.Goodyear India Limited addressed letter to the Commissioner of Customs on 19.04.1999 about the denial of endorsement and requesting them to issue necessary instructions to resolve the issue. The Deputy Commissioner of Customs, Customs House, Chennai wrote to M/s.Goodyear India Limited on 03.09.1999, requesting them to approach the Assistant Commissioner of Customs/Appraising Officer, Docks for endorsement of the Bills of Entry. The endorsed Bills of Entry from the Customs Authorities were received by the Respondent on 03.07.2000 and Respondent took credit in RG23A Part II on the same day itself. Even though the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the date of issuance of such document. Here, in this case only after the endorsement was made by the Customs department the issuance of such document viz., Bills of entry takes effect in favour of the Respondent. Therefore, the language used in sub-rule 3 that "the inputs are received in the factory under the cover of any of the following documents" shall have to be read to mean and referable to a 'valid document' and not a 'document simplicitor'. Necessarily, the authority should go into the question of validity of each and every document referred to under sub-rule 3 by taking into consideration of the facts and circumstances of each case. Therefore, when the Respondent in this case, admittedly not the importer of the inputs and the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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