2007 (10) TMI 506 - AT - Central Excise

Summary

Issues Involved:
Denial of Cenvat Credit under Rule 57H of the Central Excise Rules, 1944.

Analysis:

Issue 1: Denial of Cenvat Credit under Rule 57H

The appellant availed Modvat credit for inputs and finished goods under Rule 57H. The Superintendent of Central Excise directed the appellant to reverse the Modvat credit as inadmissible. The Commissioner (Appeals) directed the appellant to await the decision of the competent Asst. Commissioner on their claim. The Asstt. Commissioner disallowed the credit claimed by the appellant. The Commissioner (Appeals) set aside the adjudication order and remanded the matter for reconsideration. The appellant challenged this order-in-appeal, arguing that the Superintendent's letter should be treated as a nullity on the issue. The Tribunal agreed with the appellant, stating that the direction in the impugned order to submit a reply on the reasons for inadmissibility of credits given in the letter dated 6-2-96 was not sustainable. The Tribunal modified the impugned order, setting aside the direction to submit a reply on the reasons proposed for the inadmissibility of the credit and the letter dated 6-2-96. The rest of the impugned order was upheld, and the appeal was disposed of accordingly.

In conclusion, the Tribunal addressed the issue of denial of Cenvat Credit under Rule 57H, emphasizing the importance of treating the Superintendent's letter as a nullity and setting aside the direction to submit a reply on the reasons for inadmissibility of credits. The Tribunal provided a detailed analysis of the Commissioner (Appeals) orders and the Asstt. Commissioner's adjudication, ultimately modifying the impugned order based on the appellant's contentions.

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