Customs, Excise and Gold Tribunal - Delhi
Bhushan Steel And Strip Ltd. vs Commissioner Of Central Excise on 23 September, 1999
Equivalent citations: 1999(114)ELT964(TRI-DEL)
ORDER S.S. Kang, Member (J)
1. Appellants filed this appeal against the order-in-appeal dated 8-5-1997 passed by the Commissioner of Central Excise (Appeals). In the impugned order, the benefit of Modvat credit is denied to the appellants only on the ground that Modvat credit was not taken within six months from the issuance of duty-paying documents.
2. Ld. Counsel, appearing on behalf of the appellants, submits that the goods received by the appellants were duly entered in the R.G. 23A Pt. I. He submits that the Notification No. 28/95-C.E., dated 29-6-1995 was issued amending Rule 57G of the Central Excise Rules providing a restriction of six months for taking Modvat credit from the date of issuance of the duty paying documents. He submits that in this case the Modvat credit was taken after the issuance of the notification. He submits that the Tribunal in the case of National Steel Industries v. C.C.E reported in 1999 (31) RLT 191, in a similar situation, where the goods were received prior to the issuance of Notification No. 28/95, the Tribunal held that in the absence of expressed provision in the notification, giving retrospective effect to the amendment and, when the goods were received prior to the issuance of the notification, a right to take Modvat credit is accrued and it cannot be denied on the ground that notification restricting the period of six months for which the credit had been taken. He, therefore, prays that the appeal be allowed.
3. Ld. JDR, appearing on behalf of the Revenue, submits that the Notification No. 28/95 was issued on 29-6-1995 and after this date, the credit could only be taken within six months from the date of issuance of duty-paying document. He, therefore, submits that the appeal be dismissed.
4. Heard both sides.
5. In this case, the benefit of Modvat credit is denied to the appellants only on the ground that the credit had been taken after six months from the date of issue of duty-paying document. This restriction of six months was imposed by Notification No. 28/95, dated 26-9-1995. The Revenue is not disputing that the goods were received by the appellants on 5-4-1995, which were duly entered in their R.G. 23 Pt. I register. Such and credit was taken by the appellants after issuance of this notification. The Tribunal in the case of National Steel Industries (supra) held that when the right to take credit occurred prior to the issue of Notification No. 28/95 and the notification has no provision to give retrospective effect to this amendment, therefore, on such goods the credit, which was received by the assessee before issuance of this notification, cannot be denied on the ground that the credit had been taken after six months from the issue of duty paying documents. Respectfully following the ratio of the above said decision of the Tribunal, the impugned order is set aside arid the appeal is allowed.