TaxTMI 
TaxTMI 
1997 (4) TMI 156
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....ound not to accept the claim of the respondents before us. 2. The facts of the case in brief are that the respondents are engaged in the manufacture of steel ingots. On a scrutiny of the declaration filed by the Respondents herein, it was noted that the respondents had not declared the HBI Sponge Iron as an input falling under Chapter 7203.00 of Central Excise Tariff Act, 1985. It was noticed further that the respondents herein have availed Modvat credit of Rs. 3,39,314.40 on this item during the period 26-3-1992 to 23-5-1992. Accordingly, show cause notice was issued to the Respondents herein asking them to explain as to why the credit of duty on HBI Sponge Iron should not be disallowed and why the amount utilised by them should not ....
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..... JDR also submitted that the requirement of declaration under Rule 57G is mandatory and not procedural. He submits that the ld. Collector (Appeals) has not examined the issue in accordance with law. He submits that the Respondents herein intimated that they had filed the declaration under UPC and that such declaration was never received in the office to which it was addressed. He, therefore, prayed that the mandatory requirement under the Rule 57G was not complied with by the Respondents herein and therefore the order of the Lower Authority be set aside and prayed that the appeal may be allowed. 4. Shri M.P. Deb Nath, Advocate, appearing for the Respondents herein submitted that filing of declaration under Rule 57G of the Central Exc....
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....e Modvat scheme and that the plea of the ld. Consultant that it is only a condonable lapse or an irregularity is not accepted. Examining the facts of the present case in the light of the above findings of the Tribunal, we find that in Rule 57G(2) it has clearly been laid down `a manufacturer who has filed a declaration under sub-rule (1) may after obtaining the acknowledgement aforesaid take credit of the duty paid on the inputs received by him'. This rule clearly stipulates that not only the declaration will be filed, but an acknowledgement shall be taken before taking Modvat credit. In the instant case, filing of the declaration is doubtful. No doubt, the respondent herein claimed that they had sent the declaration under UPC, but the addr....