COMMISSIONER OF CENTRAL EXCISE Vs. SIDDHARTH TUBES LTD.

JUDGEMENT

(1.) In this Appeal, filed by Revenue, the issue relates to the availability of Modvat Credit of the duty paid on Capital goods to M/s. Siddharth Tubes Ltd., Respondents.

(2.) Shri O.P. Arora, the learned Senior Departmental Representative, submitted that the Adjudicating Authority had disallowed Modvat Credit to the respondent on the following grounds: (i) No declaration was filed by them under Rule 57T of the Central Excise Rules, 1944 before the receipt of the goods; (ii) Modvat credit had been taken on the strength of invoices which were not in their name; and (iii) The Credit had been taken before the installation of the capital goods.

(3.) He mentioned that the Commissioner (Appeals) has allowed partly the Respondent's Appeal, under the impugned order which is not legal and proper; that filing of declaration is a mandatory requirement failing which Modvat Credit cannot be allowed; that Circular No. 441/7/99 -CX dated 23.2.99, relied upon by the Commissioner (Appeals) only mentions that Credit should be allowed ignoring minor procedural lapses in filing declaration or in the invoice; that as per the Circular the Assistant Commissioner should ensure that capital goods have suffered duty and are being used in manufacture of finished goods and he has to record the reasons for allowing the Modvat Credit; that while allowing the Appeal, the Commissioner (Appeals) has not discussed these aspects; that the Larger Bench of the Tribunal in the case of CCE, New Delhi v. Avis Electronics (P) Ltd. has held that "when a particular tiling is directed to be performed in a manner prescribed by Rules, it should be performed in that manner itself and not otherwise"; that as in the present matter the respondents have filed the declaration after receipt of the capital goods, the credit was not available to them in the light of the decision of the Larger Bench in Avis Electronics case.