TMI Blog2003 (8) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... llants were engaged in the manufacture of bulk drugs viz. Analgin and its intermediate products falling under Chapter 29 of the CETA, 1985 and got registered vide Registration Certificate No. 4/93 with the concerned Range Officer. They were availing the benefit of Modvat credit under Rule 57A of the CE Rules, 1944. They stopped their manufacturing activities and voluntarily surrendered their Registration Certificate (RC for short) to the Range Officer on 14-12-94 vide their Letter No. SPL:CEX:94-95, dated 14-12-94 and their premises were leased out to their main unit viz. M/s. Shasun Chemicals and Drugs Ltd. and endorsement for the manufacture of Analgin and its intermediate products in the premises of M/s. Shasun Chemicals Drugs Ltd. was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t an amount of Rs. 1,52,074.66 adjusted in their lapsed credit of duty lying in RG 23A Part II account was required to be paid in cash inasmuch as the assessee had surrendered the Registration Certificate and leased out their premises to M/s. Shasun Chemicals Drugs Ltd. and endorsement for the manufacture of Analgin and its intermediate products in the premises of M/s. Shasun Chemicals Drugs were made on the same day i.e. 14-12-94 as noted above on which day the balance of Rs. 23,04,221.78 which was laying in RG 23A Part II got automatically lapsed. Moreover, no credit was available with effect from 1-3-97 by virtue of Notification No. 6/97-C.E. (N.T.), dated 1-3-97 which incorporated Rule 57F(17)(b). In the impugned order-in-appeal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Registration Certificate was surrendered by the Respondent on 14-12-94. But the cancellation of the Registration Certificate appears to have been done by 15-12-96 by the Superintendent and it was communicated to them under Letter OC No. 1916/97, dated 11-11-97 received by them on 27-11-97. Therefore, the date of communication of cancellation i.e. 27-11-97 alone can be taken to be date of cancellation. However, the respondent paid the amount in question based on the letters OC No. 1206/95, dated 9-5-95 and OC No. 127/95, dated 19-1-95 and expunged the amount in question in RG 23A Part II on 24-5-95 and 30-3-95. It may be seen that this debiting of RG 23A Part II had been done well before the cancellation of the Registration Certificate. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atever balance they had in their account stood lapsed, even though the assessee did not surrender their books. Hence subsequent debit on lapsed credit is not correct and legal. Further, the law as it stands, does not contain any provision to interpret the rules of Modvat as held by learned Commissioner (Appeals). 5. Shri A. Jayachandran, learned JDR, appearing for the Revenue reiterated the grounds of appeal in the Revenue appeal as noted above and submitted that in this case when the assessee stopped their manufacturing activities and have surrendered the Registration certificate on 14-12-94 whatever credit they had on the date of surrender stood lapsed and any utilization of credit after that date is not covered by any rule. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they could utilise the credit. With the surrender of the RC, the assessee was required to surrender the Central Excise Records. In fact in the instant case, the assessee even after surrender of the Registration Certificate chose to retain the Central Excise Records on the pretext of CERA audit and even after the audit, the Central Excise records were not returned. The intention was quite clear that they wanted to make debit entries even after surrender. We are of the considered opinion that so far as the assessee is concerned, once the manufacturing activity is stopped and the Registration certificate is surrendered and the premises were leased out to their main unit as noted above, he was no more an assessee or a registered person unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for home consumption or for export. The department also cannot be expected to re-open the closed RG 23A Part II accounts as per the convenience of the assessee, after the surrender of the RC and leasing out the premises to M/s. Shasun Chemicals Drugs Ltd. and making necessary endorsement in the RC of M/s. Shasun Chemicals Drugs Ltd. for manufacture of Analgin on the date of surrender of RC itself. Further, it is worth noting that on the date of surrender of the RC there was no stock of inputs and final products either in the form of semi-finished or finished product to utilise the Modvat credit. Therefore, we are of the considered opinion that the view taken by the lower appellate authority that even though they had surrendered the RC on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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