TISCO Vs. COMMISSIONER OF C. EX., JAMSHEDPUR

JUDGEMENT

(1.) HEARD both sides. The Appellants have been denied Cenvat credit on the impugned goods on the ground that they had not filed necessary declaration in respect of these goods before receipt of the same in the factory of the Appellants. The Appellants contend that the exact description of the goods were not declared by them but the declarations submitted by them for various items included the impugned goods also. We find that the Authorities below have properly examined the declarations and the description of the impugned goods and as held by them the declaration does not cover the impugned goods. The grounds taken by the Appellant that they are dealing with thousands of items is not a good excuse for not declaring the goods and as required under the Rules. We find that in the Appellants own case in Appeal No. EDM -340/04 (Order No. A -60/KOL/08 dated 10 -1 -2008) we had taken a view following the decision of the Honble Rajasthan High Court in the case of U.O.I. v. M/s. Grasim Industries Ltd. - 2006 (204) E.L.T. 230 (Raj.) that filing of declaration is necessary but limitation prescribed is not mandatory. Accordingly, in this case we hold that filing a valid declaration for impugned goods was necessary. However, we allow the Appellants another chance to go back to the original authority and file proper declaration who shall examine the same with reference to the impugned goods and if he is satisfied that the conditions regarding receipt of the goods, duty payment etc. are satisfied he shall allow the Cenvat credit even though the declarations are filed late.

(2.) AS regards penalty of Rs. 1,00,000/ - (Rupees One Lakh only) imposed on the Appellants, in the circumstances of the case and the fact that the Appellants have not filed relevant declarations contrary to the legal provisions and yet have taken credit of Rs. 44,81,692.83 (Rupees Forty Four Lakh Eighty One Thousand Six Hundred and Ninty Two and Eighty Three paisa only), penalty of Rs. 1,00,000/ - (Rupees One Lakh only) imposed by the Authorities below is fully justified and the same does not require any interference by us.

(3.) AS such, while upholding the penalty imposed, we set aside the duty demand and remand the matter to the original Authority. The Appellants are directed to file the necessary declarations within a month of receipt of this order after which the original Authority shall pass a fresh order after taking into account the declarations and after giving adequate opportunity of hearing to the Appellants.