2011 (5) TMI 777

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....details of inputs so received in RG 23 A Part I. However, they have taken credit on the RG 23 A Part II during the period from 1-2-2002 to 19-2-2002 and utilised the same. A show cause notice dated 1-3-2001 was issued alleging that the credit taken in February, 2002 on inputs received during the period 28-3-1994 to 7-3-1995 was not eligible as relevant documents are not dated prior to 6 months in violation of conditions under Rule 57G(5). Original authority confirmed the demand and imposed penalties. Commissioner (Appeals) has upheld the order of the original authority. 4. Learned Advocate submits that Board issued a Circular No. 4/91 CX.8, dated 14-2-1991 regarding procedure to be followed in respect of credit to be taken on inputs....

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....e (5) for availing credit in terms of Rule 57G essentially refers to the "date of issuance of the documents "enlisted under sub-rule (3) of Rule 57G and the same does not relate to entry in RG-23 A Register either in Part-I or Part II. RG-23 A Part-I relates to stock account of inputs for use in or in relation to the manufacture of final products and Part-II thereof relates to entry book of duty credit. The period of limitation, therefore, is not to be counted from the date of entry in either of the registers but from the date of issuance of the documents received in relation to the inputs which are received in the factory under the cover of such documents. Only condition is that the such document should be one of those documents enlisted u....

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.... decided that in case of disputed inputs show cause notices need not be issued if the assessee gives an undertaking that the credit would be taken on such disputed inputs only in RG 23A Part I and will not be utilised till the dispute is finally settled. The assessee can pay duty from PLA under protest to the extent of credit involved under disputed inputs. When the dispute is finally settled the credit can be suitably adjusted. Board has also desired that the disputes should be resolved as soon as possible and preferably within a period of 6 months." 9.2 It is not in dispute that the appellants in pursuance of guidelines prescribed by the Board vide Circular dated 14-2-1991 has entered the details in RG 23 Part I as reflected in th....