COLLECTOR OF CENTRAL EXCISE Vs. TELCO

JUDGEMENT

(1.) THESE three stay petitions along with their corresponding appeals filed by the Collector of Central Excise, Patna, are directed against three orders in appeal passed by the Collector of Central Excise (Appeals), Calcutta, whereby he allowed the appeals filed by the present respondent, M/s. Telco, Jamshedpur, and held that the disallowance of Modvat Credit in respect of hydraulic jacks and tool kits supplied along with the motor vehicles was not in order, as the time limit prescribed under Section 11A had expired. In the appeals before us it has been urged that rectification of Modvat credit wrongly availed is specifically and separately provided for in Rule 57 I itself, and, accordingly, the matter was regulated and disposed of by the lower authorities under that provision, and that the Collector (Appeals) was in error in applying the time limit in terms of Section 11A, which, it was contended in the appeal, has got no application in the present matter. As the Bench felt that the issue covered in the stay petition and the appeal themselves could be disposed of together, we proceed to take up the appeals straightaway. This will have the effect of rejecting the stay applications made by the applicant Collector.

(2.) As regards the merits of the issue as set out in the appeal, Sri Biswas, learned SDR appearing on behalf of the appellant Collector, stated that, as pointed out in the appeals themselves the application of tune limit in respect or wrong availment of Mod-vat Credit was introduced in Rule 57 I only with effect from 6-10-88, and as the present group of appeals deal with cases which had arisen prior to the said date, they cannot be circumscribed by the time limit of six months and the longer time availed of in the present case could not be hit by time bar. He also urged that the provisions of Section 11A and Rule 57I are independent of each other as judged from the language and scope of application. He submitted that the appeals filed by the Collector may be allowed as this has a recurring effect on the Revenue.