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TMI Blog2003 (4) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... terest. He states that the impugned goods are eligible for Modvat credit as inputs and contends that the declaration filed by the assessee in terms of Rule 57Q of the Central Excise Rules, 1944 is sufficient for the purposes of extending the credit under Rule 57A. He also challenges the penalty imposed and the interest charged on the ground that there was no suppression or wilful statement in this case. In support of his contentions, he cites the following case laws :- (1) Commr. of Cus. & C. Ex., Meerut-I v. Modi Rubber Ltd. - 2000 (119) E.L.T. 197 (Tribunal-LB), (2) C.C.E., Raipur v. M/s. Hukumchand Jute Inds. Ltd. - Order No. A/1184/CAL/2000, dated. 3-8-2000 [2001 (137) E.L.T. 633 (Tribunal)], (3) Ganga Kisan Sahkari Chini Mills Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey were used only for storage and for transferring gas in liquid form. The appellants on the other hand have contended that in the case of C.C.E., Raipur v. Hukumchand Jute Inds. Ltd. vide Order No. A-1184/CAL/2000, dated 3-8-2000 [2001 (137) E.L.T. 633 (Tribunal)], the Tribunal has allowed Modvat credit to Chlorine cylinders. The said order also cites the Tribunal decision in the case of Lupin Laboratories Ltd. v. C.C.E., Indore - 1998 (100) E.L.T. 52 (T) where Modvat credit was allowed to cylinders used for storing liquid. It also cites the decision in the case of C.C.E. Hyderabad-III v. B.O.C. India Ltd. - 2000 (36) R.L.T. 910 (CEGAT) where Modvat credit was allowed on cylinders for storing oxygen gas and it also notes that the reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also referred to the afore-cited decision of the C.E.G.A.T. (Larger Bench) in the case of Modi Rubber Ltd. which held that declaration filed by the assessee in terms of Rule 57Q for capital goods was sufficient for the purpose of extending credit on the same goods even if they were inputs. Other decisions cited by the appellants also condone such mistakes made inadvertently. Following these decisions, we allow Modvat credit on Maleic Resins etc. taking note of the rectification made by the appellants.
5. In the circumstances of the case, we do not think penalty of Rs. 4,87,376/- plus Rs. 13,32,793/- is justified. We reduce the same to Rs. 1 Lakh.
6. The appeal is partly allowed in the above terms. X X X X Extracts X X X X X X X X Extracts X X X X
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