TaxTMI 
TaxTMI 
2007 (11) TMI 188
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....olding that the Revenue has no case that any of the substantive conditions for capital goods credit was not fulfilled by the respondents when the respondents have violated to sub-rules namely Rule 57T(1) and 57T(2)?" 3. Though the questions of law are framed as above, the facts of the case proceed as follows: The first respondent herein being manufacturers of coated boards, printed boards, printed cartons and printed slides falling under Chapter 48 of the Central Excise Tariff Act,1985, taken capital goods credit of a sum of Rs.19,92,778/- in their RG 23C Part II Register during the period July to November 1995 in respect of capital goods received by them from time to time and taken into use. The appellant/Department was of the view that the respondent /assessee have not fulfilled the statutory obligation prescribed under Rule 57T of the Central Excise Rules, 1944 by not filing statutory declaration before receipt of capital goods and by not giving intimation in respect of receipt&nbs....
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....osition to make declaration within the period, he could make an application within a period of one month or such further period as might be allowed by the Assistant Commissioner within the maximum period of two months from the date of receipt of the capital goods in the factory. The manufacturer intending to take credit of the duty paid on capital goods under Rule 57Q shall intimate the particulars regarding the full description of the capital goods along with brand name and identification marks and any other particulars as the Collector might require. But in the facts of the present case, the respondent manufacturer infringed the conditions prescribed under the Rules. That aspect of the matter has been totally lost sight of by the Tribunal. 5. We heard the argument of the learned counsel appearing for the Department/appellant. 6. It could be seen from the order of the Tribunal that in ....
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....e contained therein under these rules, if such document contains details of payment of duty, description of the goods,assessable value, name and address of the factory or warehouse (ii) the declaration filed under sub-rule (1) does not contain all the details required to be contained therein or the manufacturer fails to comply with any other requirements under sub- rule(1). Provided that the Assistant Commissioner of Central Excise having jurisdiction over the factory of manufacturer intending to take credit is satisfied that duty due on the inputs has been paid and such inputs have actually been used or are to be used in the manufacture of final products, and such Assistant Commissioner shall record the reasons for not denying the credit so in each case." (b) in rule 57T, after sub....
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....p; or in the invoice/document based on which credit is to be taken. However, the Assistant Commissioner should ensure that inputs/capital goods have suffered duty and are being used/are to be used in the process of manufacture. The Assistant Commissioner is also required to record the reasons in file for allowing Modvat credit in each case. 2. The Assistant Commissioner, before issuing Show Cause Notice for wrong availment of Modvat Credit by the assessee on any procedural grounds, shall conduct enquiries with regard to duty paid nature of the goods at the suppliers and, ensure that necessary information as mentioned in the Notification are available on the invoice and satisfies himself whether the goods have been used or are intended to be used as contemplated in the Modvat ....