1991 (5) TMI 151

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....: V.P. Gulati, Member (T)]. - This is an appeal filed by the Revenue against the order of the Collector of Central Excise (Appeals), Madras. The learned Collector is aggrieved of the decision of the learned lower appellate authority allowing the Respondents the benefit of MODVAT Credit taken by them in respect of the goods after two months of the receipt of the same inside the factory. The lear....

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....a lapse of long time as in the present case. His plea is that it will be difficult for the authorities to verify the nature of the goods received and the quantum of MODVAT Credit being taken by the assessee. He has further pleaded that a lot of confusion would be created in case the MODVAT Credit is not taken immediately on receipt of the goods. On a query from the Bench, however, he could not ref....

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..... We observe that the procedure for taking MODVAT Credit has been set out in Rule 57G of the Central Excise Rules, 1944. The requirement is that the assessees are required to file declaration in respect of final products manufactured in the factory and the inputs intended to be used in each of the said final products and thereafter take the credit in respect of the duty paid on the inputs. There i....

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....ibed under Central Excise Rules and also maintained by the assessees would be available and it should not be difficult for the authorities to correlate the goods with the gate passes. In any case if the assessees fail to correlate the credit taken with the Gate passes under which the goods which entered the factory, the authorities are free to take action under Rule 57-I of the Central Excise Rule....