GRASIM INDUSTRIES LTD. Vs. CCE, JAIPUR

JUDGEMENT

(1.) This is an application, filed by M/s. Grasim Industries Ltd., requesting for waiver of predeposit of Rs. 10,43,405/ - disallowed to them as capital goods credit.

(2.) Shri M.P. Devnath, learned Advocate, submitted that during January to July, 1996 the applicants received electrical panel, electrical motors and spare coils; that as the duplicate copies of the invoices were lost in transit they applied to the Assistant Commissioner under their various letters in terms of Rule 57G(2A) for permission to take the credit on the strength of original copies of the invoices; that the Assistant Commissioner under letter dated 5.5.98 informed the applicants that the impugned capital goods were not eligible for credit under Rule 57A of the Central Excise Rules; that under Adjudication Order dated 28.10.98 the Assistant Commissioner disallowed the modvat credit holding that the impugned goods were not eligible for the capital goods credit and this order has been confirmed by the Commissioner (Appeals). He, further, submitted that the Commissioner (Appeals) has rejected the appeal filed by them on the ground that the applicants had not filed the appeal against orders dated 9.12.96 and 5.5.98; that the letter dated 9.12.96 was in the nature of a general intimation covering various items and not with reference to the specific consignment impugned in the present matter; that letter dated 5.5.98 was not an appealable order at all; that the impugned goods are eligible for capital goods credit as these items satisfied the definition of capital goods as given in Rule 57Q.

(3.) Opposing the prayer Shri Mewa Singh, learned SDR, submitted that the Department under letter dated 9.12.96 intimated the applicants with reference to capital goods declaration filed by them under Rule 57T that the capita goods credit was not available in respect of certain items indicated therein; that the applicants have not brought any evidence on record to show that any appeal was filed by them against the denial of Modvat credit in respect of goods mentioned in the letter dated 9.12.96; that once the department has at the initial stage of filing the declaration has informed the applicants about non -availability of capital goods credit which has not been challanged by them the capital goods credit was not available to them.