1998 (3) TMI 226

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....aid order he also imposed a penalty of Rs. 30,000/- under Rule 173Q of the Central Excise Rules. By the impugned order the assessing authority had held that the Modvat credit amounting to Rs. 60,073/- availed by the appellants on 13-12-1994 on the basis of the gate passes issued prior to 31-3-1994 was wrong on the ground that the goods in question were not inputs and secondly under Rule 57G gate passes issued prior to 31-3-1994 were valid for taking credit only up to 30-6-1994 and not thereafter. 2. The appellants were engaged in the manufacture of material handling equipment and metals falling in Chapter 8428 and 8457 of the Tariff respectively. In terms of agreement, between the appellants Engineering and Steel Division M/s. Lloyd....

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.... its letter dated 26th August, 1994 regarding the inputs. 5. We have considered the rival submissions. The main charge is about the over riding effect of Rule 57H/57G. In respect of the similar matters the Assessing authority namely the said Commissioner has allowed credit of Rs. 4,82,37,459/- under 57H of the Central Excise Rules. There also similar questions did arise as to whether Modvat credit on GPs issued prior to 1-4-1994 is admissible after 30-6-1994. We feel that in view of the specific provisions of the non absentee clause provided under 57H the assessee has made the case. The Circular 16/94 no doubt speak of non-utilisation of the credit after a particular date but that has been issued under 57G and not under 57H. Hence t....