TaxTMI 
TaxTMI 
2013 (7) TMI 158
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....for its opinion. The question of law that has been raised in the application by the Revenue reads thus: "Whether in the facts and circumstances of the case, the Tribunal is correct in holding that provisions of Rule 57G cannot be applied to the case covered by Rule 57H of the Central Excise Rules, 1944 ? Before considering the aforesaid prayer it would be appropriate to illustrate the factual position in the present case. The respondent, M/s Raymonds Ltd. Sausar was engaged in the manufacturing of Man Made Yarn, falling under sub-heading No.5513.29 of the Schedule to the Central Excise Tariff Act, 1985. On 4-9-1996 the respondent had filed an application, to claim modvat credit of Rs.61277641.00, under Rule 57H of the Central....
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....d by the Commissioner (Appeals) the applicant herein, had filed a Second Appeal before the Customs Excise & Gold (Control) Appellate Tribunal, New Delhi [hereinafter referred to as `the Tribunal'] raising the aforesaid question of law. The Tribunal had considered the provisions of the Rules 57G and 57H of the Rules and recorded a finding that the Rule 57H starts with the opening non obstante clause "notwithstanding anything contained in Rule 57G". So the matter is covered by Rule 57H and modvat credit can be allowed in spite of bar under Rule 57G and the Tribunal had dismissed the appeal by holding that under Rule 57H of the Rules there was no such provision debarring the assessee from claiming modvat credit beyond the period of six month f....
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....plied for the same for the first time on 4-9-1996 when the Unit had commenced its business. Looking to the transitional provision as contained in Rule 57H of the Rules, the respondent was entitled to claim modvat credit even beyond the period of six months from the date when documents were issued. It is also submitted by the learned counsel for the respondent that Rule 57H of the Rules provides special circumstance to the assessee for claiming such modvat credit even if the documents were more than six months old from the date when such modvat credit was applied. To appreciate the aforesaid contention it would be appropriate to refer to the provisions of Rules 57G and H of the Rules which are relevant for the purpose of this application. T....
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.... as being non-dutypaid, may be deemed to be duty-paid and credit of duty in respect of the said inputs may be allowed at such rate and subject to such conditions as the Central Government may direct, without production of documents evidencing the payment of duty. Provided also that the manufacturer shall take all reasonable steps to ensure that the inputs acquired by him are goods on which the appropriate duty as indicated in the documents accompanying the goods, has been paid. (2A) Notwithstanding anything contained in sub-rule (2), a manufacturer can take credit of the inputs received in the factory on the basis of the original invoice, if the duplicate copy of the invoice has been lost in transit, subject to t....
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....; (a) such inputs at (i) above are lying in stock, or are received in the factory, on or after the 23rd day of July, 1996, or such inputs are used in the manufacture of final products which are cleared from the factory on or after the 23rd day of July, 1996, and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification; (b) such inputs at (ii) above are lying in stock, or are received in the factory, on or before the 4th day of September, 1996, or such inputs are contained in the intermediate goods which are lying in stock on 4th day of September, 1996, or such inputs are used in the manufacture or packing of final products which are cleared from the factory on or af....
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....d amount from the balance, if any,lying in his credit, the balance if any, still remains shall lapse and shall not be allowed to be utilised for payment of duty on any excisable goods, whether cleared for home consumption or for export.]" The second proviso of Rule 57G of the Rules specifically provides that the manufacture shall not take credit after six months of the date of issue of any of the documents specified in the first proviso to this sub-rule. This provision specifically provides that no modvat credit shall be made available to the assessee, if such modvat credit was claimed after a period of six months from the date of issuance of the documents. But in the present case, as has been stated hereinabove, the respondent had applied....