2010 (8) TMI 324

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.... enjoying the benefits under value Based Advance Licence and Duty Exemption Entitlement Schemes and ultimately could not avail the aforesaid two schemes by reason by cancellation of advance licence, whether the assessee/respondent again can avail of benefits of the Modvat Scheme under Rule 57G of the Central Excise Rules, 1944 after expiration of six months. (b) Whether the benefit of credit under the Modvat Scheme in terms of Rule 570 of the Central Excise Rules, 1944 can be extended in case of an assessee after expiration of six months from the date of issuance of documents in a case when the assessee initially availed the said benefits within a period of six months and subsequently reversed the same for the purpose of availing th....

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.... the respondent. Hence the said Commissioner by order dated 18th February, 1999 disallowed the Modvat credit of duty amounting to Rs. 6,45,293/- in terms of Rule 57-I of the said Rule. A sum of Rs. 50,000/- was also asked to be paid on account of penalty under Rule 173Q of the said Rule in contravention of the aforesaid Rule. The assessee/respondent was also held liable to pay interest on the aforesaid amount at the appropriate rate as warranted under Section 11A of the Central Excise Act, 1944. 3. On appeal being taken to the learned Tribunal by the assessee/respondent the matter was heard by the learned Tribunal. The learned Tribunal by the impugned judgment and order has allowed the appeal and set aside the impugned order and gra....

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....of the learned Tribunal. It appears to us that the learned Tribunal has found on fact that there is no dispute about cancellation of the advance licence and there was no requirement on the part of the respondent to reverse the credit and as such already reversed credit was liable to be credited back to them. The learned Tribunal has taken note of the provisions of Rule 57G requiring the assessee to take credit within a period of six months from the date of issuance of the invoice. The learned Tribunal on fact found that the appellant had already availed of the credit within the said period. Once this course of action is taken consequence of law will automatically follow. The learned Tribunal factually recorded that said credit so earned by ....