TaxTMI 
TaxTMI 
2013 (3) TMI 301
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.... The appeal was admitted on the following substantial questions of law:- "1. Whether the Commissioner of Appeals and the Appellate Tribunal are right in allowing the credits taken in RG 23A Part II Account after expiry of 6 months from the date of document (Bill of Entry) when there is a provision under Rule 57G (5) of the Central Excise Rules, 1944 stipulating 6 months time limit for taking such credit? 2. Whether the diversion of imported goods in question by M/s.Goodyear India Limited (Importer) to M/s.S.R.F. Limited (Manufacturer) without endorsement on the Bill of Entry by Customs authority for availement of MODVAT Credit of duty under Rule 57G of Central Excise Rules, 1944 is correct as per Board's Circular No.179/13/96 CX dated....
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....t I Sl.No./Date RG23A Part II Sl.No./Date Credit of Duty taken Rs. 1 206841/11.02.99 SBR Latex 9022/117 19.02.99 712/03.07.2000 129670.80 2 208224/22.02.99 VPL Fendic 9025/123 06.03.99 713/03.07.2000 219511.90 3 208223/22.02.99 SBR Latex 9025/128 13.03.99 714/03.07.2000 111288.40 4 210445/12.03.99 SBR Latex 9025/141 31.03.99 715/03.07.2000 111158.00 5 206481/09.02.99 Fabric Adhesive 6401/1 21.04.99 716/03.07.2000 217732.60 6 211132/17.03.99 VPL Fendic 3001/1 21.04.99 717/03.07.2000 190926.60 7 210241/11.03.99 Fabric Adhesive 5401/2 21.04.99 718/03.07.2000 193436.00 8 6097/19.03.99 VP Latex 3001/2 21....
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....ppeal preferred by the Revenue was rejected by the Tribunal on the ground that the Commissioner (Appeals) allowed the appeal upon a finding that the delay in taking credit was due to the delay in making the endorsement by the Customs authorities and observed that the Revenue cannot take advantage of their own default. Being aggrieved by the order of the Tribunal, Revenue has preferred this appeal. 8. The core contention of the Revenue in this appeal is that the Respondent-assessee is not entitled to take credit after six months from the date of Bills of Entry in respect of the inputs that were received in the factory. Thus, according to the Revenue, such claim for credit beyond six months is against Rule 57G sub-rule 5 of the Central Exc....
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....elevant to extract sub-rules 1, 2, 3 and 5 of Rule 57G of Central Excise Rules as follows:- "RULE 57G. Procedure to be observed by the manufacturer -(1) Every manufacturer intending to take credit of the duty paid on inputs under rule 57A or rule 57B shall file a declaration with the Assistant Commissioner of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in the said final products and such other information as the said Assistant Commissioner may require, and obtain a dated acknowledgement of the said declaration. (2) A manufacturer who has filed a declaration under sub-rule (1), may after obtaining the acknowledgement....
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.... declarations were made immediately after the assessment of the goods imported and given to the Customs Officer for his endorsement as per Circular dated 29.02.1996. According to Respondent, as the Bills of Entry were not endorsed, the Respondent could not take credit since the Circular dated 29.02.1996 requires such endorsement. 14. M/s.Goodyear India Limited addressed letter to the Commissioner of Customs on 19.04.1999 about the denial of endorsement and requesting them to issue necessary instructions to resolve the issue. The Deputy Commissioner of Customs, Customs House, Chennai wrote to M/s.Goodyear India Limited on 03.09.1999, requesting them to approach the Assistant Commissioner of Customs/Appraising Officer, Docks for endorsemen....
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.... of the said provision, it would further reveal that the words "date of issuance of the document" should be read with wider meaning so as not to confine with the date of document alone and it can be further extended to the date of issuance of such document. Here, in this case only after the endorsement was made by the Customs department the issuance of such document viz., Bills of entry takes effect in favour of the Respondent. Therefore, the language used in sub-rule 3 that "the inputs are received in the factory under the cover of any of the following documents" shall have to be read to mean and referable to a 'valid document' and not a 'document simplicitor'. Necessarily, the authority should go into the question of validity of each and ....