TMI Blog2015 (3) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... f time and the last and final lot apparently was brought after the expiry of six months - when certain goods based on the invoice was received during the period of six months but the last and final lot was received after the period of six months, we are of the opinion that Rule 57D(6) now Rule 57G(2) of the Rules being procedural in nature does not dis-entitle the claim of the assessee for claiming Modvat credit. In the absence of any deliberate delay, coupled with the fact that the transaction executed by the assessee, being a bonafide one and, based on the direction of the Superintendent, Central Excise dated 8th February, 1995, the assessee, in the instant case, was entitled for Modvat credit. The Trade Notice No.67 of 1996 clarifies suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd final lot. Based on the aforesaid direction, the assessee started bringing the goods in smaller lots and availed credit on receipt of the last and final lot. However, the last and final lot was received after the expiry of six months from the date of the initial issuance of the invoice. In view of Rule 57D(6) as it stood now Rule 57G(2) of the Central Excise Rules a show cause notices dated 1st July, 1996, 24th August, 1996 and 17th September, 196 was issued alleging that the assessee has wrongly availed credit amounting to ₹ 3,86,366/- on the strength of invoices issued by M/s Sirpur Paper Mills Ltd. and I.T.C. Bhadrachalam Paper Boards Ltd. after six months. The assessee objected to the show cause notice, which was rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication was rejected subject to the condition that the assessee could bring in the goods in smaller lots and take credit on the receipt of the last and final lot. Based on this direction, the assessee brought the goods in smaller lots spaced over a period of time and the last and final lot apparently was brought after the expiry of six months. We find that the department had issued a Trade Notice No.67 of 1996 dated June 1996 clarifying and deciding to allow Modvat credit in such situations where a manufacture after buying the goods could not bring them inside the factory premises on account of shortage of space or under other unforeseen, unavoidable circumstances, etc. Clause 5(v) of the said departmental trade notice stated as under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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