HINDUSTAN LEVER LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(2.) APPELLANTS filed this appeal against the order in appeal whereby the MODVAT credit of Rs. 2,78,564/ - was denied to the appellants on the ground that appellants availed the benefit of MODVAT credit in respect of the inputs which were received in the factory prior to filing the declaration. Heard both sides.

(3.) IN the above mentioned case the issue before the Larger Bench was whether the assessee can avail the credit in respect of the inputs without filing the declaration. The Tribunal after taking into consideration the amended provisions of Rule 57G and the Board -Circular dated 23.2.1999 held that the amendment is also applicable to the pending cases. In the present case, the appellants filed declaration and availed the credit after filing the declaration. Therefore, in view of the above decision of the Tribunal, the appellants are entitled for the benefit of the MODVAT credit of Rs. 2,78,564/ -. Hence the appeal is allowed to this extent only. Keeping in view of the facts and circumstances of the case, the appeal is allowed and the penalty is set aside.