BHARTI TELECOM Vs. CCE

JUDGEMENT

(1.) THE issue in this appeal relates to the availment of modvat credit by the appellants beyond a period of six months from the date of issue of the modvatable documents in contravention of the provisions of Rule 57G(2).

(2.) The amount involved in the appeal is Rs. 7,20,903.60/ -. The three documents concerned in this case are two Bills of Entry both dated 11.8.1995 and one Bill of Entry dated 14.8.1995. The credits in respect of the inputs imported under these Bills of Entry were taken by the party in part II of their RG 23A account on 21.5.1996 and 24.5.1996 respectively, whereas these inputs were received in their factory on 3.11.1995 -the date on which they made entries in part I of the same account. The Assistant Commissioner of Central Excise, Gurgaon vide his order dated 10.9.1997 confirmed the demand of the aforesaid amount on the appellants and also imposed a penalty of Rs, 5000/ -. The appeal of the party was rejected by Commissioner (Appeals), New Delhi vide her order dated 9.12.1999 upholding the order passed by the Assistant Commissioner leading to the present appeal.

(3.) IN view of these dear provisions under the Central Excise Rules, the restriction of taking the credit within six months of the issue of the duty paying documents must necessarily relate to taking the credit of duty element in part II of RG 23A. In fact as rightly contended by Sh. K.K. Goel, SDR for the Revenue, the entry in both the parts should be made simultaneously. Since taking of credit on the strength of modvatable document is a single whole operation and it cannot be split into stages. The Ld. Consultant for the appellants relied on the following case laws, but as could be seen, each one is on altogether different issue and does not assist the case of the appellants: