SARAYA DISTILLERY Vs. COMMISSIONER, CENTRAL EXCISE ALLD.

JUDGEMENT

(1.) We have heard Sri A.P. Mathur, learned counsel for the appellant and Sri R.C. Shukla, learned counsel for the Department.

(2.) The appeal was admitted on the following substantial question of law: -

(3.) The facts given to the filing of the present appeal are that the appellant during the material period in question was engaged in the manufacture of country liquor, Indian made Foreign Liquor, rectified spirit and denatured ethyl alcohol. The appellant was not aware of Modvat Rules and could not claim credit being a new assessee. When the appellant came to know, an Application dated 27th August, 1994 was filed claiming benefit of Modvat credit of duty paid on molasses for the period of 1.3.1994 to 20.7.1994 under Rule 57G of the Central Excise Rules. The declaration form was filed previously on 27.7.1994 along with an application for condonation of delay. Instead of allowing Modvat credit as per Rule 57G(9) & (10), a show cause notice dated 21.12.1994 was issued to show cause why the Modvat credit availed by the appellant should not be rejected and penalty should not be imposed. The appellant submitted a reply and thereafter the appellant's application for condonation of delay was rejected. The appellant filed an appeal which was also rejected by the Tribunal against which the present appeal has been filed.