- (1.) This reference petition has been filed by the Revenue under Section 35H(1), against the judgment of the learned Tribunal dated 13-6-2001, affirming the order of the Commissioner Central Excise (Appeals), Jaipur dated 26-12-2000, whereby the order-in-original passed by learned Assistant Commissioner allowing Modvat credit to the assessee, and imposing the penalty of Rs. 10,000/- under Rule 173Q(bb) for contravention of Rule 57G(l) had been affirmed.
(2.) It is contended in the application, that the substantial question of law is involved being :- "Can the Tribunal allow the modvat credit on grinding media balls of SH. 6907 & 7325.20 under rule 57A during the period from 24-4-1992 to 16-6-1994. When it is excluded from Rule 57A and is not an input for manufacture of final product i.e. Cement."
(3.) Show cause notice was issued to the assessee on 25-7-1994, and corrigendum was issued on 18-9-1995, for recovery of central excise to the tune of Rs. 4,04,387/- taken as Modvat credit on grinding media balls of ceramic, falling under sub-heading 6907.00, and of iron and steel falling under sub-heading 7325.20, of the Schedule to the Central Excise Tariff Act. It was alleged that the assessee has taken credit of the aforesaid amount vide RG.23 Part- II, Entries No. 632 to 637, 639 and 640 all dated 16-6-1994, for inputs received by them in the factory for the period 24-9-1992 to 8-6-1993. The other ground given was, that the assessee did not file any declaration under Rule 57G for aforesaid type of grinding media balls, before utilizing them in the factory, whereas the assessee has filed a declaration on 28-9-1992, wherein specific quality of grinding media ball of iron and steel falling under sub- heading No. 7325.90, and 7326.11 were declared as inputs, and that ceramic grinding media balls were declared for the first time on 30-3-1993, at which time grinding media balls of iron and steel falling under sub-heading 7325.20, were also declared.;