1996 (6) TMI 173

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....on to the manufacture of finished products available under Section "AA" of Chapter V of the Central Excise Rules, 1944. They filed declaration under Rule 57G of the Rules declaring Billets as inputs, on 13-8-1993 and obtained the dated acknowledgment. The department found that the assessee took the Modvat Credit of Rs. 53,810 on 12-8-1993 on billets weighing 53.810 MT said to have been lying in their factory premises immediately before filing of the declaration and without making any application to the adjudicational Assistant Collector of Central Excise, seeking permission under Rule 57H of the Rules. The propriety of which was objected to by the Department. Therefore, proceedings for recovery of the said credit were initiated and a regula....

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....msp;The Learned Advocate submits that the ratio is not distinguishable as the filing of declaration in transitional provisions of Rule 57H is not mandatory and so also to obtain prior permission for taking the Credit of the duty paid on inputs received by the manufacturer immediately before obtaining dated acknowledgment of the delcaration made under Rule 57G. All that was required in the transitional provisions of Rule 57H was for the Assistant Collector to satisfy that : (a) such inputs are lying in stock, or are received in the factory, on or after the 16th day of March, 1995, or (b) such inputs are used in the manufacture or packing of final products which are cleared from the factory on or after the 16th day of March, 1995,....

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....benefit of the transitional provisions as contained in Rule 57H, it was not open for the authorities to raise a demand after more than two years without any allegation of wilful misstatement, collusion or suppression in terms of the proviso to Section 11A which, it is claimed was applicable to the demands issued under Rule 57-I. We do not think it necessary, for us to go into this aspect because the appeal can be decided on the other plea which we find is acceptable under the law." 6. In the present case, the appellants have opted for availing the facility of the Modvat Credit on their inputs under Rule 57A of the Central Excise Rules, while opting for the first time for the Modvat without filing their Modvat declaration under Rule 57....