GTC INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) M/s. GTC Industries Ltd., Vadodara (GTC) (appellant) are in appeal against the order of the respondent Commissioner, Central Excise, whereby the claim for availing transitional Modvat credit under Rule 57H of the Modvat rules was disallowed. The claim was in respect of two parts: -

(2.) The appellants followed the required procedure contained in Rule 57H and submitted the required documents as demanded by the authorities from time to time. However, the Assistant Commissioner vide order dated 24.11.95 rejected the claim on the ground that original documents were not produced, the Assistant Commissioner did not take cognizance of the photo copies of the records supplied and also ignored the fact that the original RG -I had been taken by DRI office, Baroda on 2.4.95. Aggrieved by the rejection order, special leave application was filed by the appellant before Hon'ble Gujarat High Court at Ahmedabad bearing No. 751/96. Order dated 12.2.96 was passed by the Hon'ble High Court, remanding the matter to the Assistant Commissioner for deciding the matter afresh after giving opportunity to the appellants. It was further directed in para (3) of the said order that: - -

(3.) The Assistant Commissioner passed Order No. MOD/496/97 on 31.1.97. The order mentioned that no prior permission is required for availing of transitional credit under provisions of Rule 57H of Central Excise Rules. However, in case it was found, at a later stage, that, the credit taken for which is not eligible, appropriate legal action will follow. The appellants took credit of Rs. 59,01,123.92 pursuant to Assistant Commissioner's Order above.