Allahabad High Court Judgement

Allahabad High Court Judgement

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JUDGEMENT HEADLINE : No Fresh Declaration Under 57G Excise Rules Unless Change In Input Or Final Product.
JUDGEMENT TITLE : Commissioner Central Excise, Kanpur Vs. M/S Standard Sul. Ltd. And Others On 10/19/2010 By Allahabad High Court
CASE NO : CENTRAL EXCISE REFERENCE NO. 112 OF 2000
CORAM : Hon'ble Yatindra Singh,J. And Hon'ble Rajes Kumar,J.

HIGH COURT OF JUDICATURE AT ALLAHABAD

Court No. 37
AFR
Central Excise Reference Application No. 112 Of 2000
Commissioner Of Customs & Central Excise, Kanpur..........................Appellant.
Versus
M/s Standard Sulphonators (P) Ltd., 68-A, Dada Nagar, Kanpur & Others........Respondents.

Hon'ble Yatindra Singh, J.
Hon'ble Rajes Kumar, J.

1. The Main Question Involved In This Reference Is Whether Fresh Declaration Is Required To Be Submitted Under Rule 57-G Of The Central Excise Rules, 1944 (the Rules) For Claiming Benefit Of Modvat Credit After Exceeding The Small Scale Industries (SSI) Limit.

THE FACTS
2. M/s Standard Sulphonators (P) Limited (the Respondent) Is A Manufacturer And Had Submitted Declaration Under Rule 57G Of The Rules To Claim Modvat Credit On The Inputs. However, As The Respondent Was Within The SSI Exemption Limit Under Notification No. 175/86, It Did Not Claim Any Credit.

3. Subsequently, When The Limit Of The SSI Was Being Exceeded, The Respondent Started Claiming Modvat Credit. However, No Fresh Declaration Was Filed Under Rule 57G.

4. The Adjudicating Officer Issued Two Notices Dated 18.9.1990 And 21.1.1991 And Thereafter Denied The Modvat Credit To The Respondent By His Order Dated 27/28.6.1991.

5. The Respondent Filed An Appeal, Which Was Dismissed On 2.9.1992. Further Appeal Was Filed Before The Customs, Excise & Gold (Control) Appellate Tribunal (the Tribunal). It Was Allowed On 20.4.1999.

THE QUESTION REFERRED
6. The Department Filed An Application Under The Excise Act To Refer The Question To This Court. This Application Was Allowed On 2.3.2000 And The Following Question Has Been Referred To This Court For Opinion:
'Whether A Manufacturer Who Has Initially Filed A Declaration Under Rule 57-G Of The Central Excise Rules, 1944 For The Purpose Of Availment Of Modvat Credit And Who Subsequently, Opt For Exemption Under Notification 175/86 And Then Comes Back To Modvat Facility Is Required To File Fresh Application Under Rule 57-G Of The Rules?'

THE DECISION
7. We Have Heard Sri SP Kesarwani, Counsel For The Applicant.

8. It Is Not Disputed That The Respondent Had Filed Declaration Under Rule 57G Of The Rules. However, Fresh Declaration Was Not Filed After The Limit Of Small Scale Industries Was Exceeded.

9. Under Rule 57G Of The Rules, Declaration Regarding Inputs As Well As The Final Product Is Required To Be Indicated. A Declaration Filed Once Is Good Unless There Is Change In The Aforesaid Items. In The Present Case, There Was Neither Any Change In The Inputs Nor In The Final Product.

10. In View Of This, There Was No Necessity Of Filing A Fresh Declaration. The Declaration Already Filed By The Respondent Was Sufficient.

CONCLUSIONS
11. Our Conclusions Are As Follows:
(a) Under Rule 57G Of The Rules No Fresh Declaration Is Necessary Unless There Is Change In Inputs Or The Final Product;
(b) The Question Referred Is Answered In Negative And Against The Department-applicant.

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