COMMISSIONER OF CENTRAL EXCISE, MADRAS versus M/S. HOME ASH OK LEYLAND LTD.

COMMISSIONER OF CENTRAL EXCISE, MADRAS versus M/S. HOME ASH OK LEYLAND LTD.

The right to claim MODVAT credit for duty paid on inputs is provided under Rule 57A (substantive), and the procedure for adjustments is governed by Rule 57E (procedural and clarificatory). The amendment to Rule 57E does not affect the right to claim credit for duty paid on inputs subsequent to the date of receipt. Thus, the assessee is entitled to avail MODVAT credit for the specified period.

Parties
Appellant: Commissioner of Central Excise, Madras; Respondent: M/s. Home Ashok Leyland Ltd.
Jurisdiction
India
Judgment Date
19 March 2007
Procedural Posture
Civil Appeal / Final Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Central Excise – MODVAT Credit
Taxation Law Central Excise – MODVAT Credit

Case Brief

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Parties

Commissioner of Central Excise, Madras

Appellant

M/s. Home Ashok Leyland Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the assessee was entitled to avail MODVAT credit on differential duty paid during the period 21.4.1986 to 2.4.1987 in respect of inputs received in the factory during 1986-87 and utilized between 16.8.1987 and 30.12.1987, in light of amendments to Rule 57E of the Central Excise Rules, 1944.

Ratio Decidendi

The right to claim MODVAT credit for duty paid on inputs is provided under Rule 57A (substantive), and the procedure for adjustments is governed by Rule 57E (procedural and clarificatory). The amendment to Rule 57E does not affect the right to claim credit for duty paid on inputs subsequent to the date of receipt. Thus, the assessee is entitled to avail MODVAT credit for the specified period.

Court Disposition

Appeal dismissed

Orders

  • Assessee entitled to take credit between 16.8.1987 and 30.12.1987 for Rs.6,43,994.57.
  • No order as to costs.