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of <h1>Appellate Tribunal allows credit for duty paid on exempted inputs, overturns lower authorities' decision</h1> The Appellate Tribunal set aside the lower authorities' orders and ruled in favor of the appellant regarding the credit of duty paid on inputs for ... Cenvat/Modvat - Declaration not filed Issues: Credit of duty paid on inputs, filing of declaration, eligibility for Modvat credit, duty payment on inputs, exemption from duty, setting aside lower authorities' orders, allowing credit on duty paid invoices.In this case, the main issue revolves around the credit of duty paid on inputs for availing Modvat credit. The Commissioner (Appeals) found that as per Rule 57G, a manufacturer can only avail of the credit after filing a declaration and ensuring that the inputs received in the factory are accompanied by a specified document evidencing duty payment. The appellant failed to file the declaration before receiving the inputs, and the inputs did not have duty payment evidence at the time of receipt, leading to the denial of credit by the lower authorities.Contrary to the Commissioner's findings, the Assistant Commissioner noted that the appellant did file a declaration under Rule 57G specifying various inputs for Modvat credit, including mentioning six inputs exempted from duty in a separate letter. The Assistant Commissioner emphasized that there was no specific format for the declaration and no prohibition on declaring exempted products as inputs. As the six exempted inputs had duty paid receipts after a certain date, the Assistant Commissioner concluded that credit should not be denied for these inputs, as long as duty had been paid on them.Ultimately, the Appellate Tribunal set aside the lower authorities' orders based on the findings that the appellant had indeed filed a declaration for the exempted inputs and that duty had been paid on these inputs post a specific date. Consequently, the Tribunal allowed the credit on duty paid invoices for the six inputs, thereby ruling in favor of the appellant and allowing the appeal on these grounds.
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