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TMI Blog2002 (9) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts falling under Chapter 84 85 of the Central Excise Tariff. In the budget for the financial year 1986-87, the Central Government introduced Modvat procedure by Introducing Rules 57A to 57J to the Central Excise Rules. Under Rule 57A, the Central Government was empowered to issue a notification specifying the inputs on which the credit of duty paid thereon would be available to the final products and for utilising such credits towards payment of duty leviable on the final products as specified in the notification. The Modvat procedure was introduced in a phased manner and during the year 1986-87 only 37 Chapters of the Scheduled to the Central Excise Act were covered by the Notification No. 177 of 1986, dated 1-3-1986 issued by the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r declaration, the Chapter numbers and the Chapter description of the Central Excise Tariff Act, 1985, which according to the Respondents fall to answer the descriptions of the inputs as required under Rule 57A of the Central Excise Rules. The Petitioners(d) replied to the two show cause notices stating that the declaration filed by the Petitioners was proper and in the absence of any specific format prescribed in the Rule 57G(1) of the Central Excise Rules, no action can be taken against the Petitioners. It was submitted that all the basic conditions of Modvat have been fulfilled and having accepted the declarations for all these years, it was not open to the revenue to deny Modvat credit at this stage, that too on a technical ground tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage. 5.We wanted to know from the counsel for the revenue as to whether the Petitioners were being denied the Modvat benefit solely on account of technical breach of not filing proper declaration or on merit the Modvat benefit was not available to the products manufactured by the Petitioners. The Counsel for the revenue informed us that without adjudication, it will not be possible for the revenue to make any statement in that behalf. Since the Petitioners had filed declaration before availing the Modvat credit and the same was accepted by the Respondents as well as the Central Excise Revenue Auditors, we hold that the Respondents cannot deny the benefit of Modvat credit to the Petitioners on the ground that the declaration filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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