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TMI Blog2015 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... iled credit facilities under Rule 57A and 57AB of the Central Excise Rules then prevailing. The Respondent had sent the inputs to job workers under Annexure-II Challan on payment of 10% of the value of the input as provided under Rule 57F of these Central Excise Rules. However, from January 2000 onwards, the Respondent appears to have willfully and deliberately contravened the provisions of Rule 57F (4) read with Rule 57A of these Rules. The Respondent did not pay central excise duty on these inputs received after the job work under Rule 57F (4). Those were received after the stipulated period of 180 days in terms of Rule 57F (11) of the Rules. The central excise duty on the goods was computed at Rs. 41 ,828 /for the period July 1999 to November 1999. The Respondent also availed irregular/inadmissible MODVAT credit of Rs. 69,715/-. The total MODVAT credit irregularly availed was arrived at Rs. 1,11,543/-. That is how the show cause notice dated 1st May, 2001 was issued calling upon the Respondent to show cause as to why irregular/inadmissible credit availed intentionally should not be demanded and recovered and a penalty should not be imposed for the illegality. The Respondent was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponding debit or refusal or denial but to a limited extent. In these circumstances, the view taken by the Tribunal is imminently possible. The Tribunal's order cannot be termed as perverse or vitiated by any error of law apparent on the face of the record. Therefore, the Appeal be dismissed. 8. With the assistance of the Advocates appearing for both sides, we have perused this memo of Appeal and all annexures thereto. The show cause notice was issued to the Respondent- Assessee calling upon it to show cause as to why the MODVAT credit should not be denied. The adjudicating authority found that the inputs were sent for job work. They were received after 180 days in contravention of provisions of Rule 57F (4) of the Central Excise Rules, 1944. If this is the admitted and undisputed fact, then, the Assessee failed to comply with the Rules. After 1st March, 2000, there is no time limit for availing of the credit or inputs received on completion of job work. Only the job work input received within 180 days is eligible for the MODVAT credit. The annexures to Challans issued pertain to July 1999 to November 1999. There was no provision prior to 1st March, 2000 to allow MODVAT credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the manufacture of final products and return the same to his factory (within one hundred and eighty days) for, - (i) further use in the manufacture of the final product; or (ii) removing after payment of duty for home consumption; or (iii) removing the same without payment of duty to a unit in a free trade zone or to a hundred per cent exportoriented undertaking or to a unit in an Electronic Hardware Technology Park or Software Technology Parks or supplied to the United Nations or an international organisation for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue), No.108 / 95Central Excises, dated the 28th August, 1995; or (iv) removing the same without payment of duty under bond for export. [Provided that the Commissioner of Central Excise having jurisdiction over the factory of manufacturer of the final products who has sent the inputs or pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained under sub-rule (7) to Rule 57G or the account current maintained under Rule 9 or sub-rule (1) of 173G . Thereafter by sub Rule (7), notwithstanding anything contained in Rule 57A , the manufacturer shall be eligible to take credit of an amount equal to the amount debited by him under sub-rule (6) when the inputs or partially processed inputs, as the case may be, are received back in full in his factory. By subrule (8), a manufacturer is enabled to take credit only after the entire quantity of inputs or the partially processed inputs, as the case may be, but excluding the waste, etc. is received back in the factory. The evidence of receipt of the goods back in the factory shall be in terms of sub-rule (9). By sub-rule (10) if the goods are lost in transit, the Excise Authorities can allow the manufacturer of final products to take credit under sub-rule (7) on the basis of triplicate copy of the challan . Then, by sub-rule (11 ) which is what is applicable in this case the receipt of the inputs sent out if not received back in the factory within a period of 180 days is dealt with. In that event, the manufacturer shall recalculate the amount of actual credit attributable to such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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