A.C.C. LTD. Vs. CCE

JUDGEMENT

(1.) Heard both sides. The appellant filed this appeal against Order -in -Appeal passed by the Commissioner (Appeals). In this case benefit of Modvat credit was denied to the appellant in respect of inputs used in the manufacture of final product. The contention of the appellant is that HOPE bags were made eligible for Modvat credit w.e.f. 16.3.95 and appellant filed their declaration on 23.3.95 under Rule 57G of Central Excise Rules and thereafter on 4.1.96, they filed an application under Rule 57H of Central Excise Rules for taking credit in respect of inputs lying in stock and used in the final product. The contention is that the credit was disallowed on the ground that the goods were not available for verification. The appellant relied upon the decision of the Hon'ble High Court of Madhya Pradesh in the case of Guilt Pack Ltd. v. Asstt. Collector, 1994 (45) ECC 59 (MP) : 1994 (69) ELT 222.

(2.) The contention of the Revenue is that as they have filed the declaration late, therefore, purpose of filing declaration was defected as the goods were not available in stock and therefore, no verification can be carried out in respect of the inputs on which the appellant wants to take credit.

(3.) We find that the appellant filed this declaration and the benefit of the credit was denied only on the ground that inputs were not available. We find that Hon'ble High Court of Madhya Pradesh in the case of Guilt Pack Ltd, (supra) held that as per the provisions of Rule 57H of Central Excise Rules, 1944, there is no requirement that such inputs are ought to be lying in stock. The Hon'ble High Court held as under: