TaxTMI 
TaxTMI 
TaxTMI 
2004 (5) TMI 412
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....p;Shri R. Santhanam, learned Advocate, submitted that the Apellants, manufacturer of colour pictoe tubes, avail of MODVAT Credit of the duty paid on the inputs and capital goods used in or in relation to the manufacture of the colour picture tubes (CPTs), that a show cause notice dated 3-7-1997 was issued to them for denial of Modvat Credit on capital goods for the period from December, 1996 to February, 1997; that the Assistant Commissioner under Order-in-Original No. 214/98, dated 18-5-98 disallowed the Modvat Credit amounting to Rs. 1,52,68,140/- which was reversed by them under protest on 20-5-98; that the Commissioner (Appeals) vide Order-in-Appeal No. 123/99, dated 1-4-1999 allowed Credit of Rs. 1,40,53,140/-to them and remanded the m....
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....als) and the adjudication order being remanded for de novo adjudication, either wholly or partly, the demand raised earlier has been wiped out and for a non-existing demand, there can be no action for collection or recovery; that when once the amount of MOD VAT Credit was debited by them pursuant to the Adjudication order dated 18-5-1998 and the said Order being set aside in appeal, they had become entitled to take re-credit thereof. He relied upon the decision in the case of Bharat Foam Udyog Ltd. v. CCE, 2001 (44) RLT 613 (CEGAT) wherein it has been held by the Tribunal that "where the deposit was made by making endorsement in the PLA, the assessee himself could have taken credit of the amount by making necessary endorsement in his own PL....
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....e Modvat Credit. 5.  We have considered the submissions of both the sides. Modvat Credit of the duty paid on capital goods was governed by Rules 57Q to Rule 57U of the Central Excise Rules, 1944 during the relevant period. The Modvat Credit of the duty paid on capital goods was available to a manufacturer on receipt of the capital goods subject to the procedure prescribed in Rule 57T of the Central Excise Rules, 1944. One of the main condition for availing the Modvat Credit was that every manufacturer intending to take Credit of the duty paid on capital goods shall, before the receipt of the capital goods, file a declaration with the Assistant Commissioner indicating therein the particulars of the capital goods description of the fina....
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....to Rs. 1,40,53,140/- and remanded the matters back in respect of capital goods involving Modvat Credit Rs. 12,14,999/- and requested the Adjudicating Authority to decide the matter at the earliest. Subsequently under intimation to the Department the Appellants had taken the Credit back in their RG 23-C register to the extent the Credit had been allowed to them by the Commissioner. The Revenue has disallowed the said amount on the ground that the Appellants should have filed a refund claim and should have waited till the Adjudication Order in remand proceedings is passed as the Commissioner (Appeals) had remanded the matter entirely to be re-adjudicated in respect of all capital goods and not only in respect of some capital goods involved in....
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.... under Section 35F of the Act should have been returned after the Final Order dated 15-2-1999 by the Department without demur. In the instant case where the deposit was made by making endorsement in the PLA the assessee himself could have taken Credit of the amount by making the necessary endorsement in his own PLA account. The assessee is directed to take Credit of the said amount in his PLA with notice to the concerned jurisdictional authority. The Officer is directed not to pursue the show cause notice issued proposing to reject claim for return of the money." The Tribunal has thus held that the assessee is eligible to take the Credit of the amount by making necessary endorsement in his PLA account. In the present matter also the Appella....