COMMISSIONER OF CENTRAL EXCISE Vs. RAYMONDS LTD.

JUDGEMENT

(1.) This is an application filed by the Commissioner, Central Excise, Bhopal under Section 35(H) of the Central Excise Act, 1944 for issuance of a direction to the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi for referring the matter to the High Court on the question raised in the application for its opinion. The question of law that has been raised in the application by the Revenue reads thus:

(2.) Before considering the aforesaid prayer it would be appropriate to illustrate the factual position in the present case.

(3.) The respondent, M/s Raymonds Ltd. Sausar was engaged in the manufacturing of Man Made Yarn, falling under sub-heading No.5513.29 of the Schedule to the Central Excise Tariff Act, 1985. On 4-9-1996 the respondent had filed an application, to claim modvat credit of Rs.61277641.00, under Rule 57H of the Central Excise Rules, 1944 [hereinafter referred to as 'the Rules'] in respect of raw materials, i.e., Gray Fabrics & Finished goods lying on the stock as on 4-09-1996, which wassubsequently revised by the party to Rs.61208600.00 vide its letter dated 9-01-1997. The respondent had filed declaration under Rule 57H of the Rules claiming modvat credit on the basis of documents which were issued beyond six months from the date of filing of the application. The Assistant Commissioner adjudicated the matter by holding that the provision of Rule 57G of the Rules shall be applicable in the matter and since the respondent had applied for modvat credit on the basis of the documents which were issued more than six months back, relying on the second proviso of Rule 57G of the Rules, which came into force from 9-6-1995, he had rejected the claim of the respondent by holding that after six months from the date of issuance of documents, such modvat credit could not have been claimed.