ORIENT PAPER MILLS Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellant filed this appeal against the order -in -appeal passed by the Commissioner (Appeals) whereby the request for transfer of credit which was lying in their account was declined.

(3.) THE appellants were working under the proforma credit Scheme and were availing the benefit of proforma credit in respect of the duty paid on inputs as provided under Notification No. 201/79 issued under Rule 56A of Central Excise Rules. The notification was rescinded on 28.2.86 on that date some credit was lying in the accounts of the appellant. Thereafter with effect from 1.3.87 Modvat Scheme was introduced. Rule 57H(3) of Central Excise Rules provides that Assistant Collector may allow credit of the duty paid on inputs received by a manufacturer immediately before filing of the declaration, availing of the special procedure under Rule 57A of Central Excise Rules in respect of the materials for use in manufacture of finished excisable goods. The appellant made a request to the Assistant Commissioner for transferring the credit accrued under Rule 57A of Central Excise Rules. The request was declined. On appeal filed by the appellant, the Tribunal remanded the matter to the adjudicating authority to decide eligibility of the appellant under Rule 57H of Central Excise Rules. The adjudicating authority allowed the request. However, on appeal filed by the Revenue, the Commissioner (Appeals) vide the impugned order set aside the order passed by the adjudicating authority.