TMI Blog2003 (1) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... ne, 1986. 2.The Petitioners manufacture motor vehicles, machines etc. The Petitioner, at the relevant time, had two factories one situated at Pimpri and another at Chinchwad. 3.Notification No. 201/79-C.E., dated 4th June, 1979, issued by the Central Government in exercise of powers conferred under sub-rule (1) of Rule 8 of Central Excise Rules, 1944 gave exemption to all excisable goods on which the inputs, components, parts, raw materials falling under the erstwhile Tariff Item 68 had been used, from so much of the duty paid on such inputs, raw materials, and/or component, parts, subject to the conditions prescribed therein. The Petitioners were availing benefit of the aforesaid notification in respect of several items including "oils ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s respectively in the Notification issued under Rule 57A. 6.On 30th March, 1986 the Petitioners made separate application to the Central Excise authorities in respect of the two factories, seeking Permission to transfer the unutilised credit lying in their old RG 23A Part II Register to their new RG 23A Part II Register opened under the Modvat scheme. 7.By orders dated 6th October, 1987 the Assistant Collector partly permitted to transfer unutilised credit to the extent of Rs. 65,818.40 and refused to transfer the balance unutilised credit in respect of oils and coolants to the extent of Rs. 4,94,237.04 on the ground that the same were not covered by the Modvat scheme. The Assistant Collector held that the credit had lapsed because ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s further held that, under Section 37 of the Central Excise Act, 1944, there is no power with the Central Government to make rules to the effect that such accrued rights shall lapse. Mr. Shroff, submitted that in the present Rule 57H did not even provide for lapsing of the accumulated credit and hence the excise authorities were in error in holding that the said credit has lapsed. Mr. Shroff also brought to our notice that in order to overcome the aforesaid judgment of the Apex Court in the case of Eicher Motors (supra), Section 37 was amended with retrospective effect from 16th March, 1995 specifically giving power to provide for lapsing of credit. It was submitted that the case of the Petitioner pertains to the period prior to 16th March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal products manufactured out of such inputs were not included in the Notification issued under Rule 57A of the Central Excise Rules, there was no provision to declare the unutilise credits to have lapsed. As held by the Apex Court in the case of Eicher Motors Limited (supra) there was no provision under Section 37 of the Central Excise Act, 1944 to frame rules so as to declare such unutilised credit as lapsed. Therefore, the vested rights of the Petitioners in respect of unutilise credits on 'oils and coolants' as on 28th February, 1986 could not be held to have been lapsed, as there was neither specific provision to that effect nor a statutory provision under the Central Excise Act to declare such credits as lapsed. Moreover, if the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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