TMI Blog1998 (12) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... ision made in Order-in-Appeal Nos. 343 and 344-C.E./Appeal/Bhopal/98, dated 15-6-1998 whereunder the Commissioner (Appeals) had allowed the departmental appeals filed against Order-in-Original Nos. 76/96, dated 4-6-1996 and 78/96 dated 11-6-1996 passed by the Additional Commissioner of Central Excise, Nagpur. By his orders referred above the Additional Commissioner of Central Excise, Nagpur dropped the 6 show cause notices, 5 against appellants Maharashtra Insecticides Ltd. and one against the appellant Yawalkar Insecticides Pvt. Ltd. 3. The Commissioner (Appeals) by the impugned order had reversed the finding of the Additional Commissioner, Nagpur, holding that the appellants were not eligible for benefit under provisions of Rule 57A, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner did not have power to grant exemption from a particular date under Section 5A of the Central Excises Salt Act, 1944. The Additional Commissioner by his Order-in-Original No. 78/96, dated 7-5-1996 dropped the proceedings against which an appeal was filed before the Commissioner (Appeals) who by the impugned orders reversed the findings. 5. Similarly the appellant in Appeal No. E/2722/98-Bom. was carrying on business of manufacture of insecticides and pesticides falling under Chapter 38 of CETA, 1985. They were availing Modvat credit Rule 57A. A show cause notice was issued on 1-8-1995 calling upon the Appellant to reverse the Modvat credit in terms of Rule 57-I of Central Excise Rules. The Appellant filed a reply to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Yawalkar Pesticides Pvt. Ltd. argued that even though the facts of the case are identical with that of the other Appellant there are certain distinguishing facts which were highlighted by him. He stated that in this case there was no order passed by the Assistant Commissioner which was made on 14-11-1994. Here the show cause notice is clearly barred by limitation as the demand was made from 03-02-1995 and the show cause notice dated 1st August, 1995 was issued is clearly barred by limitation. 9. As against this learned SDR Shri C.P. Rao argued that the entire matter is fully covered by the larger bench decision in the case of Kirloskar Oil Engines v. Collector of Central Excise reported in 1994 (73) E.L.T. 835 and the judgment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll. The Assistant Collector by his order dated 11-11-1994 has accepted the said contention and stated that the representation made by the assessee on 17-9-1994 would be acceptable from 14-9-1994. It was the case of the assessee that their case should be accepted from 17-9-1994. The order by the Assistant Collector as stated above clearly stated that it was acceptable only from 14-11-1994. If they felt aggrieved they ought to have been filed an appeal which they did not do it. It is true that the show cause notice dated 10-5-1995 refers to the order of the Assistant Collector dated 11-11-1994 but yet the ground on which the demand is made under the show cause notice dated 10-5-1995 was that the credit of duty already taken by the noticee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court has held as follows : As already stated, Rule 57C clearly states that no credit of duty paid on inputs shall be allowed if the final product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty. This provision clearly contemplate a situation like the one before us. There is another provision in Rule 57-I where the officer can demand the reversal of the credit which has been taken on account of an error, omission or mis-construction. It was contended that when the credit was taken the final product was not exempted from excise duty and it is only subsequently that the final product became exempt from excise duty and, therefore Rule 57C was not attracted. This contention is not correct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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