1997 (11) TMI 186

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....3-1986 to 31-3-1986 under Rule 57H. They made three applications dated 1-4-1986, 7-4-1986 and 11-9-1986. 1.2 On scrutiny by the Assistant Commissioner, the credit for the inputs lying in stock as aforesaid or received by them during the aforesaid period in respect of the application dated 1-4-1986, was allowed by the Assistant Commissioner. However, the said Assistant Commissioner disallowed the applications dated 7-4-1986 and 11-9-1986. 1.3 On appeal, the lower appellate authority, however, allowed the appeal on the ground that even though the respondents would be not entitled to the benefit of Rule 57H, but they would be entitled to the benefit of deemed Modvat credit in terms of Ministry's letter F. No. B-22/5/86-TRU, dat....

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.... Commissioner's order dated 17-8-1987 at page 5 thereof, learned JDR has pointed out that in respect of two of the items at Serial Nos. 10 and 11 of the application dated 7-4-1986, the goods were imported in 1985 and the counter-veiling duty, therefore, must have been paid before 31-1-1986. Relying on this evidence, the Assistant Commissioner had disallowed the benefit on the remaining items as well. Apart from this, learned JDR also submits that if the dates of purchase of the other items were also seen as referred to in the impugned order of the Assistant Commissioner, it would be reasonable to infer that the goods must have been imported prior to 31-1-1986 inasmuch as some of the dates themselves in respect of purchases made by the respo....

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....vocate, Shri S.N. Sinha Mahapatra for the respondent firm, urged that Ministry's Circular dated 7-4-1986 (as amended) is an independent Circular issued under Rule 57G and no condition of Rule 57H should be read therein. Since no cut-off date had been provided in the said Circular, therefore, even if the duty had been paid prior to 31-1-1986, still they were entitled to the benefit of deemed Modvat credit so long as the other conditions of the Ministry's Circular dated 7-4-1986 were satisfied. He submits that production of the duty paying documents are not at all necessary whenever the goods are purchased from outside and which are covered by the Ministry's Circular dated 7-4-1986. 6. We have carefully considered the submissions. So ....