TMI Blog1998 (7) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... is is a revenue appeal against the order of Commissioner (Appeals) dated 9-4-1997, permitting the assessee to avail Modvat credit on capital goods. The Assistant Commissioner had disallowed the credit by holding that the declaration filed under Rule 57T(1) was time barred. Therefore, he directed them to recredit them and also imposed a penalty of Rs. 5 lakhs. The Commissioner has noted that under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess in connection with the production is carried on . Therefore, he has held that for the purpose of the Central Excise Act, the factory comes into existence only after it is registered under the Central Excise Law. He has noted that the assessee had registered themselves on 11-7-1994 and they had filed the declaration on 22-7-1994 and, therefore, there was no delay in the matter and hence they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd/or got registered. Therefore, the DR submits that they ought to have filed the declaration irrespective of their obtaining licence and commencement of the factory. Learned DR submitted that the goods were received in the factory in the month of April, 1994 and hence declaration filed in the month of July, 1994 is barred by time. 4. Learned Advocate pointed out that this clarification came onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the factory had not been done. This circular has got only prospective effect and not retrospective effect. The party had clearly explained that the declarations were not received by the department prior to the issue of licence and, therefore, they filed it immediately on obtaining and hence, their availing credit was in time. The revenue s ground that the date of entering the factory in April ..... X X X X Extracts X X X X X X X X Extracts X X X X
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