2006 (3) TMI 399

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....work purposes. In this case the appellant purchased raw-materials and directed the supplier to deliver the raw-material to the job workers' place during the months of May to June, 1999. The appellant's factory declared lock out on 23-7-1999 and re-opened on 26-8-2002. The appellant subsequently contacted their job workers and got the intermediate product back from them in their factory in March and April, 2003. The appellant availed the Modvat credit on the inputs so delivered to the job workers in their statutory books. Show cause notice was issued to the appellant directing to show cause as to why such credit availed by them be incorrect and denied them and penalty imposed on them. The appellant contested the show cause notice. The adjudi....

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....have filed a declaration under Rule 57F(3) of the Central Excise Rules, 1944. It was also submitted by him as they have filed a declaration under Rule 57F(3) the appellant should have followed proper procedure as laid down in the said Rule 57F(3). 5. Considered the submissions made by both sides and perused records. I find from the records that the appellant had filed declaration with the Jurisdictional Assistant Commissioner of their factory regarding functioning under Rule 57F(3) under Notification No. 214/86 dated 25-3-1986. In that declaration I find that the appellant had categorically mentioned in one of the columns that raw-material will not be directly delivered to the job worker's place but they will be brought in the appel....

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....availed were beyond the period of nine months from the date of issue, on the face of clear statutory provision, the appellant could not avail Modvat credit, even if their factory was under lock out. The appellant's contention on eligibility on Modvat credit fails and is liable to be dismissed and I do so. 7. The appellant's contention that the show cause notice issued to them does not invoke any provision of Central Excise Rules, 1944 but were issued under Cenvat Credit Rules, 2002 does not help them, for the reason that the show cause notice, if read in totality indicates the violation of the rules, which does not entitle the appellant from availing the Modvat credit on the disputed invoices. Provisions of Central Excise Rules appl....