P.G. Chacko, Member (J)
1. These are appeals of the Revenue against the common order passed by the Commissioner (Appeals) in two appeals preferred to him by the assessee aggrieved by two different orders of the original authority. By the impugned order, the Commissioner (Appeals) has allowed deemed Modvat credit totalling to Rs. 5,68,693 to the respondents covering the period December 97 to June 99. Ld. Commissioner (Appeals) has relied on the Boards Circular No. 331/47/97-CX dated 30.8.97 to hold that the assessee was entitled to take; deemed Modvat credit under Notification No. 58/97-CE(NT) on inputs supplied by the manufacturer thereof working under the Compounded Levy Scheme of Section 3A of the Central Excise Act, to the extent of 12% of the invoice price of the said goods, which was not inclusive of the sales tax, handling charges and the like.
2. In the present appeal, the department has complained to the effect that the Boards Circular ibid was not properly understood by the lower appellate authority. According to the appellant, the invoice price of the goods should include freight, insurance, sales tax, etc. in addition to the actual price of the goods.
3. Ld. JDR has reiterated this ground today.
4. Ld. Counsel for the respondents has justified the order of the Commissioner (Appeals) on the strength of the terms of the Boards Circular as also on those of the Notification ihid.
5. I have examined the submissions. I have closely perused the Boards Circular and find that the Circular is very clear to the effect that sales tax, freight, etc. were includible in the value of the goods (inputs) to be reckoned for the purpose of computation of 12% under Notification No. 58/97-CE(NT).
6. In the instant case, the respondents have taken deemed Modvat credit @ 12% of the value of the inputs including sales tax, freight etc. in terms of the Boards Circular. There is nothing wrong with the impugned order. Ld. Commissioner (Appeals) has correctly understood and applied the Circular to the respondents case. The appeals of the Revenue are rejected.
Cce v. Good Luck Steel Tubes Ltd
Cce v. Good Luck Steel Tubes Ltd
(Customs, Excise And Gold (control) Appellate Tribunal New Delhi)
Appeal No. E/2154-55/2002-Nb(Sm) [Arising Out Of Common Order-In-Appeal No. 126-127/Ce/Mrt/2002 Dated 8.5.2002 Of The Commissioner Of Central Excise (Appeals), Ghaziabad] | 03-10-2002
Advocate List
- For Petitioner : S.C. Pushkarna, JDR
- For Respondent : Rajesh Chhiber, Adv.
Bench
- P.G. CHACKO, MEMBER
Eq Citations
- 2003 (87) ECC 184
- 2003 (160) ELT 707 (TRI. - Delhi)
- LQ/CEGAT/2002/1938
Head Note
Excise — Modvat credit — Entitlement of — Deemed Modvat credit — Assessee worked under the Compounded Levy Scheme of Section 3A of the Central Excise Act —Notification No. 58/97-CE(NT) provides that the assessee is entitled to take deemed Modvat credit on inputs supplied by the manufacturer thereof working under said Section 3A, to the extent of 12% of the invoice price of the said goods, which was not inclusive of the sales tax, handling charges and the like — Board's Circular No. 331/47/97-CX dated 30.8.97 clarifies that sales tax, freight, etc. were includible in the value of the goods (inputs) to be reckoned for the purpose of computation of 12% under the said Notification — Held, assessee is entitled to take deemed Modvat credit @ 12% of the value of the inputs including sales tax, freight etc — Decision of Commissioner (Appeals) upholding the same, upheld — Central Excise Act, 1944, Ss. 3A, 5A and 57B — Notification No. 58/97-CE(NT) — Board's Circular No. 331/47/97-CX dt. 30.8.97\n
