Cce Vs. Usan Laboratories Pvt. Ltd.

1. this is an appeal against the decision of collector (appeals), mumbai made in order-in-original no. nk (575) 1143/94 dated 9.1.1995 whereunder he ordered entitlement of modvat credit for six months, that is the reasonable time. the assessees are a private limited company engaged in the manufactured of bulk drugs classifiable under chapter 29. they received various inputs during the period march 1991 to april 1992 and the credit for the inputs were taken during the period march 1992 to july, 1992. the department objected the taking of the credit belatedly as the inputs were entered in rg-23a pt. i. so it should taken immediately thereafter.2. the collector (appeals) in the impugned order after referring to order, no. 473/92/wrb dated 20.3.1992 in the case of serene dyestuff v.cce, pune and the case of mysore lac & paints works ltd. held that modvat credit can be availed within a reasonable time i.e. six months period is a considerably reasonable time. accordingly he granted benefit to the assessee respondent for availment of modvat credit within six months from the receipt of the inputs.3.i have considered the grounds of appeal of the department. i do not agree with the grounds that just because reference has been filed against the tribunal's decision in mysore lac paints works ltd. precedent value of that decision is negated. i, therefore, reject the contentions of the department and dismiss the appeal.