1998 (6) TMI 335

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..... ongly availed of by them. The ground given in these show cause notices and which now survives for decision is that the appellants failed to file the declaration under Rule 57G for Modvat purpose showing the full description of the inputs with the Chapter Heading and sub-heading and sub-heading numbers of the inputs on which credit has been taken during the month of 1-3-1989 to 30-6-1989. The Assistant Commissioner of Central Excise, Pune Division I, confirmed the demand and the Commissioner (Appeals) upheld it. 2. The ld. Counsel Shri L.B. Attar for the appellant submitted that the appellants had filed declaration on 1-3-1986 at the very beginning of the Modvat credit scheme and at that time there was no prescribed proforma for declar .....

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..... laration given and which is now in dispute is not as prescribed in the rule and in the context of the Modvat credit this lapse is not to be considered as a minor violation. 4. We have carefully considered the submissions. We find that the appellants had admittedly filed a declarations on 1-3-1986 and subsequently also from time to time. We must also bear in mind in this context that the Modvat scheme came into effect from 1-3-1986 and the proforma for declaration to be filed in the Rule 57G was finalised and brought into force subsequently during that year, and the present appellants also had been filing initially declaration as per the advice of the Department and appeared to have revised the declaration as required by the Department .....

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..... ion, on the facts of this case, such lapse on the part of the appellant cannot be regarded as fatal to their claim for Modvat itself. In this context it is also relevant to note that there were other charges in the show cause notices regarding irregular availment of Modvat on grounds other than improper declaration and the appellants have not raised any dispute but have accepted the demand in respect of those charges. Therefore, we hold that in view of the revised declaration, and having regard to the past practice of accepting declaration from the appellant by the Department, it will be in the interest of justice and within the broad object of the Modvat scheme to hold that the appellant in this case are entitled to Modvat credit. The appe .....

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