TaxTMI 
TaxTMI 
2009 (7) TMI 818
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....he view of the Tribunal is correct in law that the credit of Modvat provided in Rule 57B in cases where the input is cleared in terms of notification granting partial exemption, based on the value of clearance i.e. Notification 175/86 could be taken at a point in time later than credit of duty actually paid is taken? Reference No. 4 of 2001 3. Whether the higher notional credit in terms of Rule 57B of the Central Excise Act, 1944 can be taken within a reasonable period i.e. six months from the date of receipt of the input and original date of credit taken? Though the questions in both the references are differently worded, the controversy involved therein is same and hence, for the sake of convenience, both these references are he....
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....of the correct applicable provision of the Rules for the purpose of claiming Modvat credit under Rule 57B of the Rules. The Assistant Collector of Central Excise has, therefore, issued the show-cause notice on the respondent Company calling for their explanation as to why credit of central excise duty amounting. to Rs. 55,500.56 in DEB taken in RG23A Part II (Maaza) on Thums-up in violation of Rule 57B, should not be disallowed and reversed under Rule 57-I of the Rules and why penalty should not be imposed under Rule 173-Q of the Rules. 6. The above show-cause notice was adjudicated and order was passed by the Assistant Collector, Central Excise, Division III, Ahmedabad on 9-6-1992. As a matter of fact, three different orders in Orig....
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....al vide its order dated 17-9-1999 referred the above question of law for the opinion of this Court. Mr. Y.N. Ravani, learned Central Government Counsel appearing for the revenue has submitted that there is no provision in Rule 57B which permits the assessee to claim Modvat credit at a later date. He further invited the Court's attention to the Board's letter dated 7-9-1988 on the basis of which show-cause notice was issued on the respondent-assessee. The issue was raised in RAC meeting (Hyderabad) on 12-12-1988 and the Chairman of the Central Board of Excise and Customs clarified that the law does not permit to claim credit at a later date, if not taken initially, in absence of any specific provisions under the Modvat Rules. He has, therefo....
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....reasonable period. 12. In Commissioner of Central Excise, Pune v. SPM Tools, 1998 (99) E.L.T. 147 (Tribunal), the Tribunal has rejected the reference application filed by the Central Excise department on the ground that there is no bar expressly or impliedly provided for in any of the relevant Rules disentitling the party from availing of credit at a later date and this being the position, the issue as formulated does not give any rise to an issue of law worth referring to the High Court. 13. A converse situation arose in the case of Government of India v. Citedal Fine Pharmaceuticals, 1989 (42) E.L.T. 515 (S.C.), wherein a question of recovery of escaped duty without any prescribed period was involved. In that case, Rule 12 o....