TMI Blog2002 (9) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... appliances. In view of above discussions, I hold that the appellant had rightly taken Modvat credit on the compressors." Learned Commissioner (Appeals) further held - "As the Modvat credit has been found admissible to the compressors used by the appellant, then the Modvat credit taken on its parts cannot be denied irrespective of the fact that sub-heading under which 'Air Receiver Tank' is classified is not covered under the schedule of items listed in Rule 57Q. This aspect has already been clarified by Ministry of Finance vide its Circular No. 276/110/96-TRU dated 2-12-96." 2. Facts of the case briefly stated are that the respondents herein are engaged in the manufacture of iron and steel products. They are availing Modvat credit in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed Modvat credit and imposed a penalty. 3. Arguing the case for Revenue Shri Mewa Singh, learned SDR submits that learned Commissioner (Appeals) has erred in allowing the Modvat credit availed by the respondents herein after expiry of six months from the date of payment of duty on Bills of Entry; that Trade Notice No.5-CE/97, dated 20-1-97 which clarified that the period of six months for the purpose of taking Modvat credit in the case of imported goods shall be computed from the date of payment of duty and not from the date of issue of Bill of Entry, was issued for the convenience of the Trade which was based on the Circular No. 275/109/96-CX, dated 26-11-96; that the Apex Court in the case of Paper Products Ltd. v. C.C.E. reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly taken the Modvat credit within a period of six months from the date of issue (release of the Bills of Entry). He, therefore, prays that the appeal may be rejected. 5. We have heard the rival submissions. We have also perused the evidence on record as also the case law cited by both the sides. We note that Chandigarh Commissionerate had issued Trade Notice No. 5/97 in which it was clarified that the date of payment of duty shall be treated as the date of issue of the Bill of Entry in terms of Rule 5G(5) of the Central Excise Rules, 1944. We note that Rule 5G(5) of Central Excise Rules envisages that the Modvat credit can be availed inter alia on Bill of Entry within six months from the date of issue. A question, therefore, arises, "what ..... X X X X Extracts X X X X X X X X Extracts X X X X
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