C.C.E., Bhopal Vs. M/S. S.K. Tyres and Tubes - Court Judgment

Excerpt:

.....held that there is no requirement for filing fresh declaration under rule 57g of the rules while switching over from full exemption to modvat scheme, if the manufacturer had/earlier filed a declaration for availing the modvat credit.4. the contention of the revenue is that the respondents filed a declaration for availing the modvat credit and they availed the benefit of modvat scheme. thereafter, the respondents opted for availing the benefit of exemption under notification no. 1/93 and thereafter the respondents again opted for modvat scheme. the objection of the revenue is that the when the respondents opted for modvat scheme second time, they are required to file a fresh declaration. the tribunal in the case of standard detergents pvt. ltd. vs c.c.e. reported in 1999 (34) rlt 767, after relying upon the earlier decision of the tribunal, held that if the manufacturer filed a declaration for availing the modvat credit, there is no requirement for filing a fresh declaration while switching over from full exemption to modvat scheme. in view of the above decision of the tribunal, i find no merit in the appeal and the same in rejected. (dictated in court).

Judgment:

1.The revenue filed this appeal against order-in-appeal passed by the Commissioner (Appeals).

2. In the impugned order, the Commissioner (Appeals) held that there is no requirement for filing fresh declaration under Rule 57G of the Rules while switching over from full exemption to MODVAT Scheme, if the manufacturer had/earlier filed a declaration for availing the MODVAT Credit.

4. The contention of the revenue is that the respondents filed a declaration for availing the MODVAT credit and they availed the benefit of MODVAT Scheme. Thereafter, the respondents opted for availing the benefit of exemption under notification no. 1/93 and thereafter the respondents again opted for MODVAT Scheme. The objection of the revenue is that the when the respondents opted for MODVAT Scheme second time, they are required to file a fresh declaration. The Tribunal in the case of standard Detergents Pvt. Ltd. vs C.C.E. reported in 1999 (34) RLT 767, after relying upon the earlier decision of the Tribunal, held that if the manufacturer filed a declaration for availing the MODVAT Credit, there is no requirement for filing a fresh declaration while switching over from full exemption to MODVAT Scheme. In view of the above decision of the Tribunal, I find no merit in the appeal and the same in rejected. (Dictated in Court).