CCE Vs. VAITHILINGAM SPINNING MILLS PVT.

JUDGEMENT

(1.) Revenue is aggrieved with the order of the Commissioner by which he has held that assessees have filed the declarations within the stipulated period under Rule 57T from the date of commencing of their production and that they have rightly taken modvat credit in respect of capital goods. The findings recorded by him in para -5 is noted herein below: - -

(2.) Heard Ld. SDR Shri G.S. Menon for appellant -revenue and Shri T. Ramesh, Ld. Counsel appearing for respondent -assessee.

(3.) Ld. SDR took me through the grounds of appeal and submitted that the period in question from which the capital goods were received by the assessee was from May '96 to Nov '98 and they had filed the declaration on 7.5.99 requesting for condonation of delay, if any, and the same was rejected by AC on 14.5.99. On filing the declaration, they took credit on capital goods. Therefore, show cause notice dated 5.8.99 was issued proposing to disallow the credit as well as to impose penalty. The Asst. Commissioner had dropped penalty proceedings, however confirmed the demands in the SCN as assessee had taken modvat credit after the expiry of the period. However, the Commissioner (Appeals) has passed the abovenoted order which is not in terms of law and requires to be set aside.