Decided on October 16,1991



R. Jayaraman, Member (T) - (1.) THIS is an appeal directed against the Order -in -Appeal bearing No. SKM -170/90 -B -I, dated 8 -2 -1990 passed by the Collector of Central Excise (Appeals), Bombay, rejecting the appeal of the appellants.
(2.) THE facts of the case are that the appellants received cabinets which are inputs for manufacrure of computers from a small scale unit availing exemption under Notification No. 175/86. At the time of receipt of the inputs they took the credit as indicated in the Gate Pass namely Rs. 11,985/ -. They detected later that they have not taken the higher notional credit eligible to them under the aforesaid notification and also permitted under Rule 57B of the Rules. Hence, they took the credit of difference between the higher notional credit and the credit originally taken on 12 -11 -1988. This credit was taken within 4 days of taking the original credit. This position was also indicated suitably in the RT - 12 Return filed for the month alongwith the extract of RG -23A Part II. However, the Supdt. objected to the taking of additional credit of Rs. 5992.50 on the ground that it should have been taken at the initial stage itself and not subsequently. The Supdt. on the request of the appellants passed an appealable order, against which an appeal was filed, which was also rejected by the Collector (Appeals).
(3.) SHRI M.H. Patil, the Ld. Advocate contended that there is no provision in Rule 57B of the Rules denying the higher notional credit being taken at a later date. In this case, by mistake they have taken the credit as per the Gate Pass, and they realised that, they are entitled to higher notional credit, since the inputs have been received from a small scale unit availing exemption on value basis. Hence, they have immediately rectified the mistake within four days and also even before the RT - 12 assessment, the position has been corrected and hence the benefit cannot be denied. Shri K.M. Mondal, the Ld. SDR, on the other hand, pleaded that according to the Trade Notice issued by all Collectorates the assessees are to take the higher notional credit on receipt of inputs and there is no provision in the MODVAT Rules for allowing higher notional credit at a later date. MOD -VAT Credit is an instantaneous credit arrangement. In this context, he referred to the Trade Notice issued by the Bombay III Collectorate No. 83/88 dated 5 -10 -1988 appearing in 1988 (19) ECR page 9C. In fact the Gate Pass itself should indicate the availability of higher notional credit and the amount of notional credit in such cases. Shri Mondal, the Ld. SDR, thus supported the order.;

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