TaxTMI 
TaxTMI 
1997 (4) TMI 159
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....before a licensee seeks credit of duty paid inputs purportedly lying in stock immediately before the dated acknowledgement of declaration of Rule 57G and whether in the absence of any application for speeking credit under the then Rule 57H(1)(A) how the Asstt. Collector will reach such satisfaction envisaged under Rule 57H(1)(A)." 2. The facts of the case are that M/s. Mahalaxmi Steel Rolling Mills Pvt. Ltd. are manufacturer of iron and steel products falling under Chapter 72 of the Schedule to Central Excise Tariff Act, 1985. The assessee filed a declaration under Rule 57G and obtained acknowledgement on 13-8-1993. It was observed by the deptt. that the assessee took Modvat credit of Rs. 53,810/- on 12-8-1993 on billets weighing 53....
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....on laid down under Rule 57H without filing of any application by the respondents herein for seeking credit of duty under Rule 57H. It has been argued that filing of an application under Rule 57H is a must under Rule 57H(1)(A) though there is no stipulation for prior permission in the said Rule. The main question involved in the case is how the Asstt. Commr. may allow credit under Rule 57H after satisfying the criteria laid down in the said Rule even without any formal application for seeking credit under Rule 57H(1)(A) by the respondents herein. 3. Shri V.R. Sethi, ld. DR appearing for the applicant Commr. referred to para 6 of the Tribunal's order. Para 6 of the Tribunal's order reads as under : "6. In the present case, the....
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....to obtain prior permission from the Asstt. Collector, so long as taking of the credit satisfies the criterion laid down with regard to the satisfaction of the Asstt. Collector, then the credit taken by the assessee cannot be found fault with. It is a matter of common sense also that if the assessees were to wait for the prior permission the result would be that the assessee has to endlessly wait for prior permission, which results on stoppage of production and causing serious consequencies and losses to the assessee. Therefore, the transitional provisions under Rule 57H gives laxity for the assessee to utilise the inputs lying in stocks or received in the factory after filing the declaration made under Rule 57G or such inputs are used in th....
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....996 (84) E.L.T. 366. Cases reported in 1996 (87) E.L.T. 726 and 1996 (81) E.L.T. 174. The ld. Counsel for the respondents herein submitted that in this case, the Tribunal held that Modvat credit taken on their own by the assessee although wrong and liable to penal action, substantive benefit under the Modvat scheme not deniable when stock of inputs lying in stock is established. The matter was remanded to the Asstt. Collector for verification whether duty was paid on the goods and whether the original duty paying documents were available with the assessee. (ii) in the case of Bajaj Sewashram reported in 1996 (87) E.L.T. 726. The ld. Counsel for the respondents submitted that the Tribunal in this case held that credit taken and....