Judgment:
1. Appellant filed this appeal against the order-in-appeal No.187-C.E./KNP/92, dated 14-8-1992 passed by Collector (Appeals) Central Excise whereby the Collector (Appeals) confirmed the order passed by the Assistant Collector, Central Excise. The Assistant Collector ordered the appellant to reverse the amount of Rs. 1,38,834.36 taken as modvat credit on the ground that their availment of modvat facility as a declarant unit without paying duty on their clearances is irregular.
2. Brief facts of the case are that appellant are engaged in manufacture of PSC sleepers falling under Tariff Heading 6807.00 of the Central Excise Tariff and were availing SSI exemption under Notification No. 175/86-C.E., dated 1-3-1986. They filed declaration under Rule 57G of Central Excise Rules, 1944 on 14-5-1990 and took credit in respect of inputs without getting L4 Licence. The show cause notice was issued and after adjudication demand was confirmed.
Appellant filed appeal and the same was dismissed.
3. Ld. Counsel appearing on behalf of the appellant submitted that the appellants had filed declaration under Section 57G of the Central Excise Rules, 1944 on 14-5-1990 which was dully acknowledged by the Department and thereafter the appellants too Modvat credit in respect of the inputs. He-further submitted that the Central Excise Rules provides that a manufacturer intending to take credit of the duty paid on the inputs under Rule 57A shall file a declaration with the Assistant Collector and obtaining a dated acknowledgement of the said declaration and a manufacturer who had filed a declaration rules may provide that after obtaining the dated acknowledgement take credit of the duty paid on the inputs received by him. He therefore prays that the respondent has wrongly denied the benefit of modvat credit taken after filing the declaration dated 14-5-1990. He further submitted that the Collector in the impugned order held that appellant should have followed the procedure under Rule 57H of the Central Excise Rules regarding the inputs received immediately before filing the declaration. Ld. Counsel submitted that the case of the appellant is that they have taken Modvat credit after filing the declaration dated 14-5-1990. He therefore prays that the appeal be allowed.
5. In the present case, the appellants were working under the SSI exemption under Notification No. 175/86-C.E., dated 1-3-1986, therefore for being declared unit, the appellants were not under the Licensing Control of the respondents. The appellants applied for necessary registration under the Central Excise Rules, 1944 and L4 Licence was granted to the appellants on 1-10-1990. Thereafter the appellants filed a declaration under Rule 57G of the Central Excise Rules, 1944 for availing the benefit of modvat scheme on 4-10-1990. Therefore under this situation I do not find any infirmity in the impugned order whereby it was held that appellants were not entitled for modvat credit before 4-10-1990. In respect of the inputs lying in the stock on the date of filing declaration dated 4-10-1990, the appellants had not approached the authorities to consider their case under Rule 57H of the Central Excise Rules, 1944. In view of the above mentioned facts and circumstances, I do not find any infirmity in the impugned order. The appeal is dismissed.