TMI Blog2004 (1) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... mounting to Rs. 34,211/- being the 5% differential credit is correct. 2. The brief facts of the case are that the appellants are registered manufacturers of Tyres, Tubes and Flaps falling under Chapter 40. They have availed Modvat credit of the duty on the inputs used in the manufacture of the said final products and used them towards payment of duty on the said products. On scrutiny of the Modvat inputs documents for the period March, 1999 to April, 1999, the department noticed that the assessee had taken inter alia 100% Modvat credit of the differential duty paid on the inputs received by them between 2-6-1998 and 27-2-1999. In terms of Notification No. 5/94-C.E. (N.T.), dated 1-3-1994, as amended by Notification No. 14/98-C.E. (N.T.), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal is whether the Modvat credit of duty paid as per the certificate issued by the Department under Rule 57E can be availed fully during the period subsequent to 27-2-1999, even though the inputs relating to the said 57E certificate was received prior to 28-2-1999. He submitted that Notification No. 5/94-C.E. (N.T.), dated 1-3-1994 was amended by Notification No. 14/98, dated 2-6-1998 which restricted the Modvat credit on inputs to 95%. This restriction was removed by Notification No. 21/99-C.E. (N.T.), dated 28-2-1999. He submitted that inputs were received into the factory during the period between 2-6-1998 and 27-2-1999 and they have availed the Modvat credit to the extent of 95%. He has submitted that when the restriction was removed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nths from the date of issue of supplementary invoice is not admissible as limitation laid down under Rule 57G is applicable to Rule 57E. 3.1. The learned Counsel submitted that date of taking credit in the RG 23 is the relevant date for the purpose of restricting the percentage of eligibility. 4. Smt. Bhagyadevi, learned SDR appearing for the Revenue defended the impugned order and submitted that no doubt vide Notification No. 21/99, dated 28-2-1999 which superseded Notification No. 5/94-C.E., dated 1-3-1994 the restriction earlier placed in availing Modvat credit up to 95% of the duty paid was removed. In the present case, the appellants had received the inputs between 2-6-1998 and 27-2-1999 and they have also availed the Modvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of time-bar involved. She has also invited our attention to the decision of this Bench in the case of Ashok Leyland v. CCE, Chennai vide final order Nos. 546 and 547/2002 [2002 (148) E.L.T. 453 (T)] where in similar circumstances, the appeal of the party therein was dismissed. The learned SDR therefore prayed for rejection of the appeal. 5. I have carefully considered the rival submissions and gone through the case records and also perused the various Notifications, the trade notice and the various rulings relied upon by both the sides. I note that the restriction of 95% credit was removed and 100% credit was restored vide Notification No. 21/99-C.E. (N.T.), dated 28-2-1999 with effect from the date of issue of the said Notification, viz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . On the other hand the Trade Notice has taken care of even a situation where the inputs had been received prior to 28-2-1999 and in respect of which credit has been taken on or after 28-2-1999, i.e. after the issue of the Notification. The date of receipt of 57E certificate is not relevant and what is relevant is date of receipt of the inputs, their utilization in the manufacture of final product, the Modvat credit availed on it and utilization of the same for payment of duty on the final product. If the contention of the appellants is to be agreed, then Notification No. 21/99 becomes irrelevant and otiose. This Tribunal in the case of Ashok Leyland v. CCE, Chennai vide final order Nos. 546 and 547/2002, dated 3-5-2002 as cited by the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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