9911796707
TMI Blog1998 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. They are registered as Small Scale Industries Unit by Directorate of Industries. They are manufacturing the `Kalori', `Family' and `Britannia' brand of biscuits of the other manufacturers. They were also availing modvat benefit on the inputs under Rule 57G of the Rules and had availed the benefit regularly till 31-5-1992. They availed the full exemption from payment of excise duty up to the first clearances of Rs. 20 lakhs as per intimation dated 31-3-1992, which was completed on 16-6-1992 as per their intimation dated 31-3-1992. They further intimated as per their letter dated 17-6-1992 that they would avail the modvat benefit with effect from 17-6-1992 and accordingly started to take credits on the inputs to be used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts at the same time. 4. Shri S.S. Mehra, ld. Consultant appearing for the appellants submitted that the appellants/assessee were free to opt out of the modvat scheme or to prefer exemption at any time on prior intimation and this has been duly done in the instant case, department was not justified in denying the modvat credit. He submitted that in their original declaration filed by the party it was clearly described with full description of the inputs as well as final products. In addition to the classification list filed by them makes it clear that the appellants had declared Britannia brand of biscuits in addition to their own brand of biscuits. As regards the charge of the department that the fresh declaration is called for after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n contained in the notification was not applied to the specified goods where the manufacturer affixed the specified goods with a brand name or trade name (registered or not) of another person who is not eligible for the grant of exemption under this notification. He also referred to the proviso to Clause 3 of the notification wherein it was mentioned that for the purpose of ascertaining the value of clearances, the clearances of excisable goods where a manufacturer affixed the specified goods with a brand name or trade name (registered or not) of any other person who is not eligible for grant of exemption under this notification shall not be taken into account. 6. I have carefully considered the submissions made by both sides and peru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken into consideration and details required to be verified with original records of appellants. Benefit of modvat credit, if otherwise eligible not to be denied merely on account of non-filing of declaration under Rule 57G of Central Excise Rules, 1944. Tribunal has been consistently taking the view that procedural lapse if any would not come in the way of substantial right. It appears that in the instant case the modvat credit has been denied only on the ground that fresh declaration was not filed. Further, in view of the clause 3 of the Notification 175/86 it is clear that the value of clearances, if any, which was manufactured under brand name of another person is not eligible for exemption would not be taken into consideration for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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