THE COMMISSIONER OF CENTRAL EXCISE, COMMISSIONERATE-II, CHANDIGARH Vs. M.C. HANDA & BROTHERS, JALANDHAR AND ANR.

JUDGEMENT

(1.) The Revenue has filed this reference petition wider Sec. 35H(1) of the Central Excise Act, 1944 against the order dated January 4, 2001 passed by the Customs, Excise & Gold (Control) Appellate Tribunal -respondent No.2.

(2.) Briefly stating, the facts of the case are that M/s M.C. Handa & Brothers (respondent No. 1) are the manufacturers of valves and cocks. They availed the facility of mod -vat credit to the tune of Rs.14,754/ - on electrolytic high grade zinc metal. However, be -fore availing of the credit on the input, no declaration under Rule 57G of the Central Excise Rules, 1944, was filed. A revised declaration was filed on July 30, 1996 wherein it was prayed that Central Excise Duty had already been paid on the electrolytic high grade zinc metal and therefore they are entitled to get modvat credit. They also prayed that the delay be condoned.

(3.) The Assistant Commissioner vide order dated April 3, 1997 disallowed the credit of Rs. 14,754/ - and also imposed a penalty of Rs.2,000/ - on the ground that the company was an old assessee and had failed to prove modvat declaration. Moreover, according to the adjudication authority, there was no reason to condone the delay. The respondent M/s M.C. Handa & Brothers filed an appeal before the Commissioner (Appeals), who vide his order dated December 29, 1998, allowed the credit. However, the penalty imposed was maintained. The Commissioner, central Excise, filed an appeal against the or -der dated December 29, 1998 before the tribunal, which was dismissed vide order dated January 4, 2000.