CENTURY LAMINATING COM. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The assessee did not have adequate space within the factory premises for storage of raw materials, namely, paper. Accordingly, the assessee sought permission by letter dated 1st December, 1994 seeking permission to store the inputs used by it outside its factory premises and permit it to avail Modvat credit on the duty paid thereon. The Superintendent, Central Excise Range, Hapur by an order dated 8th February, 1995 rejected the assessee's application holding that no permission can be granted to store the goods outside the godown. The authority, however, permitted the assessee to store the goods and keep bringing the goods in smaller lots and take credit on the receipt of the last and final lot. For facility, the order of the Superintendent, Central Excise dated 8th February, 1995 is extracted hereunder:--

(2.) In view of Rule 57D(6) as it stood now Rule 57G(2) of the Central Excise Rules a show cause notices dated 1st July, 1996, 24th August, 1996 and 17th September, 1996 was issued alleging that the assessee has wrongly availed credit amounting to Rs. 3,86,366/- on the strength of invoices issued by M/s. Sirpur Paper Mills Ltd. and I.T.C. Bhadrachalam Paper Boards Ltd. after six months. The assessee objected to the show cause notice, which was rejected and the Assistant Commissioner of Central Excise by an order in original dated 29th April, 1997 confirmed the demand. The appeal filed by the assessee was rejected by the Commissioner of Central Excise (Appeals) by an order dated 9th March, 1998. The assessee took up the matter in reference to the High Court in a reference application. The High Court allowed the reference application and directed the Tribunal to state the case and refer the questions of law to the High Court for its opinion. The Tribunal has accordingly, framed the question of law to the High Court for its opinion, namely,

(3.) We have heard Shri A.P. Mathur, the learned counsel for the assessee and Shri R.C. Shukla, the learned counsel for the Central Excise department.