C.C.E. KANPUR Vs. LALJI BOARD INDUSTRIES

JUDGEMENT

(1.) THIS Reference Application is filed by the Revenue in respect of Final Order No.A/94/99/NB(SM) dt. 12.2.99.

(2.) THE brief facts in this case are that the appellants M/s. Lalji Board Industries had availed the modvat credit totally amounting to Rs.31,310.87 in respect of the capital goods - wire cloth and felt during the period from 11.8.94 to 29.8.94. This modvat credit was denied to the party by the Asst. Commissioner of Central Excise Division, Agra on the grounds that the modvat credit on these capital goods was availed on the strength of the invoices without filing intimation regarding receipt of the said capital goods in their factory premises but before installation or use they are required under Rule 57 -T of the Central Excise Rules, 1944 and particulars regarding full description of capital goods, its brand, name, identification marks or number, if any and particulars of Gate Passes or Bills of Entry as the case may be.

(3.) THE party finally succeeded in their appeal before the CEGAT vide above said order in which it is observed that the language of Rule 57 -T read as a whole shows that the Officers are correct in their interpretation but normally, the intimation should be given in advance and where there is a delay and application for condoning the delay indicating the sufficient cause should ordinarily be filed. The Bench, however, observed in its order that once admittedly there was no dispute about compliance of the essential requirement for taking modvat credit and the inputs were eligible and received in the factory and used in the manufacture of final product, the benefit should not be denied merely on the ground that there was delay in giving intimation and use. Consequently, the Bench allowed the appeal of the party.