G AND G PHARMACEUTICALS Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal on the ground that modvat credit was denied and penalty was imposed on the ground that appellants had availed the credit without filing declaration under Rule 57 -H of Central Excise Rules and adjudicating authority wrongly condoned the delay in filing the declaration under Rule 57 -H of the Rules.

(2.) THE brief facts of the case are that the appellants are engaged in the manufacture of medicines and for availing the credit in respect of inputs used in the manufacture of final product, the appellants filed necessary declaration under Rule 57 -G of Central Excise Rules, on 15.9.98 along with application for condoning the delay. The delay was condoned. Thereafter, the appellant also filed a declaration under Rule 57 -H on 13.1.1999 in respect of the duty paid on the inputs lying in stock. Thereafter credit was taken on 11.3.1999.

(3.) A show cause notice was issued for denial of this credit. The adjudicating authority dropped the proceedings on appeal filed by the Revenue denied the credit on the ground that there was no provision under Rule 57 -H to condone the delay in filing the declaration and declaration is to be filed prior to taking credit so that Revenue can verify the inputs lying in stock.