BELLIS INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In this Appeal filed by M/s Bellis India Ltd. the issue involved is whether Central Excise duty is demandable if the inputs are received back after reprocessing after 180 days of their clearance from the factory.

(2.) Shri Suresh Agarwal, learned Advocate, submitted that the Appellants manufactured steam turbines and parts thereof; that they had sent six sets of turbine parts for job work after reversing 10% MODVAT credit; that five sets were received within 180 days and only one set was received late by there days; that the Deputy Commissioner under Order -in -Original No. 56/2001 dated 27.7.2001 disallowed the entire credit of Rs. 29,714/ - and order the recovery of the same holding that the goods were received after 180 days; that the Commissioner (Appeals) also under the impugned Order has rejected their Appeal holding that under the provisions of Rule 57 F(8) of the Central Excise Rules, 1944, the credit could be taken only after the entire quantity of inputs is received back in the factory and since the entire quantity was not received back within 180 days, credit was not available to the Appellants. Learned Advocate relied upon the Board's instructions issues under F. No. B -4/7/2000 -TRU dated 3.4.2000 and submitted that as the goods had been received back though late by a few days, they are eligible to take the MODVAT credit. Reliance has also been placed on the decision in the case of U.P. Twiga Fibre Glass Ltd. v. CCE Meerut 1999 (32) RLT 721 (CEGAT) wherein it has been held that credit is not to be denied on the ground that the inputs sent for processing to a job worker were received back after expiry of sixty days.

(3.) Countering the argument, Shri S. Bhatnagar, learned Departmental Representative reiterated the findings as contained in the impugned Order and emphasised the provisions of Rule 57 F(8).