DINDAYAL AUSHADHI (P) LTD. Vs. CCE, BHOPAL

JUDGEMENT

(1.) M/s. Dindayal Aushadhi (P) Ltd. have filed this appeal being aggrieved by Order -in -appeal No. 1040/99 dated 6.8.99 passed by the Commissioner (Appeals), Bhopal confirming the demand of Modvat credit.

(2.) Shri Ravi Holani, learned C.A., submitted that the Appellants initially availed benefit of full exemption of payment of duty upto first clearance of Rs.30 lakhs and thereafter claimed the benefit of Modvat credit by filing declaration; that as declaration was filed late by one month they requested for condonation under provisions of Rule 57G (5); that as no action had been taken by the Department they had taken the Credit on 8.2.96 in their RG -23A, Part -II; that the Asstt. Commissioner under Adjudication Order No. 174/96 dated 24.10.96 disallowed the Modvat credit and imposed a penalty on the ground that the inputs were received in April, and May, 1995 the credit of which had been taken in February, 1996 which is after six months of the date of issue of the duty paying documents and they were also not eligible for credit as they were availing of full exemption from payment of duty under Notification No. 1/93 during the said period in terms of provisions of Rule 57 -C of the Central Excise Rules; that the Commissioner (Appeals) also dismissed their appeal under the impugned Order.

(3.) The learned C.A., further, submitted that the inputs were lying in their stock on the day they started removal of goods on payment of duty and as such they are eligible for availing of Modvat Credit on such inputs lying in stock; that the Asstt. Commissioner had passed the Adjudication Order without considering the reply filed by them as well as without hearing them. He also mentioned that the Asstt. Commissioner's letter rejecting their request for condonation of delay in filing the declaration though is dated 19.1.96 was received by them only on 24.5.96.