CCE Vs. VMA ENTERPRISES (P) LTD.

JUDGEMENT

(1.) THIS appeal is directed against order in appeal dated 19/03/2004 which allowed respondent modvat credit.

(2.) THE relevant fact that arise for consideration are respondent availed modvat credit of input on 24/03/2000. The authorities during the checking came to the conclusion that the respondent have availed the modvat credit without filing the declaration and therefore the credit was reversed on 08/04/2000. The authorities later on while scrutinizing the quarterly RT 12 Return filed by the respondent, found that the respondent had availed the modvat credit of the same input on 31 August, 2000. The authorities issued show cause notice to the respondent for reversal of modvat credit so availed by them, on an allegation that they had re -credited the amount subsequently after the change of modvat/cenvat credit rules and illegally showing that the inputs were received after 01/04/2000. Adjudicating authority confirmed the demand and also imposed penalty. On an appeal, Commissioner (Appeal) set aside the order in original on the ground that the appellant had filed declaration of the identical item in 1999 and at the most this case can be considered as difference in classification of six digits case. Department is in appeal against this order.

(3.) LEARNED advocate on the other hand submits that the whole show cause notice proceeded on the presumption that the respondent had not filed the declaration and still availed the modvat credit. He submits that the legislature in its own wisdom had amended Rule 57G by notification No. 7/99 which permitted availment of credit on inputs even if the duty paying document does not contain full details or non -filing of the declaration.