TMI Blog2019 (2) TMI 1787X X X X Extracts X X X X X X X X Extracts X X X X ..... er makes it clear that a manufacturer who has filed a declaration in terms of sub-rule (1) may after obtaining the acknowledgment take credit of money on the inputs - Close reading of Rule 57-O of the Rules, 1944 makes it clear that filing a declaration is a condition precedent and it is only after filing a declaration and intimating the Department the input which the manufacturer intends to use, which would be only prospectively and only after satisfying the Assistant Collector of Central Excise with reference to any information which he may require and obtaining the acknowledgment may take the credit of money on the inputs. - MCC No. 297 of 2007 - - - Dated:- 5-2-2019 - Sanjay Yadav and Vivek Agarwal, JJ. Shri K.N. Gupta, Senior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was issued by the Assistant Commissioner, Central Excise on 10/14-9-1994 proposing to disallow money credit. The assessee filed reply on 13-12-1994. Following order came to be passed by the Deputy Commissioner on 5-5-1995, to the following terms :- As regard money credit it is alleged that no credit in respect of stock of inputs received prior to declaration can be availed, since there is no transitional provision available as is exists under Rule 57H for MODVAT credit. Rule 57G(2) under MODVAT scheme reads as under : A manufacturer who has filed declaration under sub-rule (1) may, after obtaining the dated acknowledgment aforesaid, take credit of duty on the inputs received by him. The above rule clearly provides for credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question of admissibility of credit under the provisions of Rule 57Q. Since the respondent did not claim money credit on the stock lying before filing the declaration under the provisions of Rule 57Q before the original authority and also not followed the procedure and safeguards prescribed under the Notification No. 45/89, credit cannot be allowed to them at this stage. The ratio of decisions of Tribunal in the case of M/s. Oswal Vanaspati Allied Industries, 1996 (83) E.L.T. 341 (T.); and Hindustan Lever Ltd., 1997 (93) E.L.T. 295 (T.) relied upon by the respondent are also no help to them as they failed to follow the procedure prescribed under Notification supra. 4. In appeal, the Customs, Excise and Service Tax Appellate Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts manufactured in his factory and the inputs intended to be used in each of the said final products and such other information as the said Assistant Collector of Central Excise may require and obtain a dated acknowledgment of the said declaration. (2) A manufacturer who has filed a declaration in sub-rule (1) may, after obtaining the acknowledgment aforesaid, take credit of money on the inputs : Provided that no credit shall be taken unless the inputs are manufactured in the factory of manufacturer of the final product or are received in the factory under a proper invoice or dispatch note indicating the name and address of the supplier of the inputs : Provided further that the manufacturer shall ensure that the supplier is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of said declaration. 10. Thus an assessee is put under a statutory obligation to file a declaration indicating to the Department the input intended to be used in the manufacture of the finished product and sub-rule (2) of Rule 57-O further makes it clear that a manufacturer who has filed a declaration in terms of sub-rule (1) may after obtaining the acknowledgment take credit of money on the inputs. 11. Close reading of Rule 57-O of the Rules, 1944 makes it clear that filing a declaration is a condition precedent and it is only after filing a declaration and intimating the Department the input which the manufacturer intends to use, which would be only prospectively and only after satisfying the Assistant Collector of Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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