2006 (2) TMI 543 - AT - Central Excise

Appeal Dismissed: Timely Credit Availment for Imported Goods Upheld

The Department's appeal against the order allowing Modvat credit to the respondent for goods imported slightly beyond the specified time limit was ... Cenvat/Modvat on inputs - Time-limit for availment of credit -Computation of Issues:1. Availment of Modvat credit beyond the specified time limit.Analysis:The appeal was filed by the Revenue against an order-in-appeal that allowed the credit of Modvat to the respondent. The main issue in this case was whether the respondents were eligible to avail Modvat credit for goods imported beyond the specified time limit. The respondents imported goods and availed Modvat credit, which the Department argued was beyond the stipulated period by one day, making them ineligible for the credit.Upon considering the submissions and examining the records, it was found that the respondents imported inputs against a Bill of Entry dated 11-8-95 and availed Modvat credit. Due to some issues with the duty paying documents, they availed the balance credit on 17-2-96. The Department contended that this availing of credit on 17-2-96 was beyond the six-month period allowed by law. However, it was highlighted that the date of availing credit was not beyond the six-month period from the date of issue of the Bill of Entry, as the duty was paid and goods were received within the stipulated time frame.Referring to a previous judgment, it was noted that the date of filing the Bill of Entry does not impact the physical movement of goods to the user's factory within the prescribed period. The Tribunal's decision in a similar case supported the appellant's argument. Ultimately, it was concluded that the Commissioner's order allowing the respondent to avail credit on 17-2-96 was correct and should be upheld. Therefore, the Department's appeal was dismissed, and the judgment was pronounced in open court on 6-2-2006.