PRAMEELA PLASTICS PVT LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order dated 20.5.1987 passed by the Collector of Central Excise (Appeals), Madras.

(2.) The facts in brief are that the Assistant Collector of Central Excise, Lalbagh Division, Bangalore, allowed MODVAT facility to the appellants by taking their letter dated 4.3.1986 addressed to the Supcrintendant, Central Excise for availing MODVAT under Rule 57G of the Central Rules, 1944 whereas they had filed the declaration for MODVAT only vide their letter dated 26.8.1986. This order of the Assistant Collector was sought to be reviewed by the application filed before the Collector (Appeals) by the Department under Section 35-E (4) of the Central Excises and Salt Act, 1944 on the ground that the Assistant Collector's order was erroneous because according to the application for review, any order for availing MODVAT has to be only to take effect after the declaration has been filed with the jurisdictional Assistant Collector and acknowledged, and it cannot take effect before that date. The Collector (Appeals) held the contention of the Department that MODVAT credit cannot be allowed and utilized prior to filing of declaration as envisaged under Rule 57G of the Central Excise Rules, 1944.

(3.) HEARD Shri K. K. Bhalia, the learned S.D.R. who contended that the provisions of Rule 57G are very specific that the MODVAT facility of taking credit on inputs for paying duty on the final product has necessarily to follow the filing of a declaration with the jurisdictional Assistant Collector and obtaining acknowledgement therefor. In this case, the declaration letter dated 4.3.1986 does not amount to such a declaration since it was filed before jurisdictional Superintendent.