9911796707
TMI Blog1998 (2) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... G of Central Excise Rules on 29-3-1990. The Department found on a scrutiny on RT 12 monthly returns filed by the Appellants that the inputs on which the Appellants had taken Modvat credit had not been received in their factory but were stored in various godowns located outside the factory. They had also applied for transitional Modvat credit under Rule 57H in respect of inputs lying in stock in their godown prior to filing declaration. Two show cause notices were issued under Rule 57-I for recovery of Modvat credit as well as transitional credit wrongly availed. The jurisdictional Assistant Commissioner of Central Excise, Division IV, Ahmedabad considered their defense and dropped the demands for Rs. 4,35,233/- for transitional credit and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the factory under cover of prescribed duty paying documents. Same condition of receipt in the factory and lying in stock in the factory of inputs is contained in Rule 57H relating to transitional credit which the Assistant Commissioner is empowered to allow on inputs received and lying in stock in the factory prior to the date of filing declaration under Rule 57G. Admittedly the Appellants had taken Modvat credit on inputs received not in their factory but in their godowns located outside the factory. They have explained the circumstances leading to the situation as being due to the factors such as the levy of excise duty on ice-cream came into effect only from 20-3-1990 and prior to that date there was no statutory necessity of storing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been properly accounted for in the RG 23A register Part I & II and all the inputs have been utilised in the manufacture of the final product namely ice-cream declared by the party. All the above particulars were got checked and verified by deputing a Range Superintendent and Inspector from the divisional office who have reported the fact as mentioned above. The only lapse on the part of the assessee was that at material time when the inputs were accounted for in RG 23A, they have actually not been received in the factory but the major portion was received and stored in the assessee's godowns outside the factory and subsequently brought into the factory in piecemeal." The Assistant Commissioner then concluded that there has thus been substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extension of the factory premises. 6. Viewing the facts of the present case, in the above context the Appellants herein, it is clear, could not receive the whole of, the declared inputs due to shortage of space. The subsequent movement of the inputs from godown to factory it is stated are covered by their own challans bearing printed serial numbers. Further, as noted above, the Assistant Commissioner has already got the verification done regarding their receipt in factory and utilisation and has been satisfied about it. On these facts and in the circumstances of this case, therefore, we are inclined to agree with the decision of the Assistant Commissioner that there has been substantial compliance in this case with provisions of Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X
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