Date of reply cannot be taken to be date of declaration for denial of CENVAT credit
THE appellants are manufacturers of processed textile fabric. Vide Notification no. 25/03-CE(NT) the facility of MODVAT was extended to the manufacturer of processed fabric. Accordingly, appellant availed the CENVAT credit on the stocks lying in their factory as on 01.04.2003 and they filed declaration to this effect on 01.04.2003 as well as on 25.05.2003.
Thereafter revenue raised some queries in the matter of the declaration filed by the appellant and same was replied by the appellant on 07.07.2003.
Later on, the Revenue took the view that the appellant had not filed the declaration within three months as required in terms of the notification. Inasmuch as the clarification was offered only on 07.07.2003 and which is beyond three months, therefore, the appellants are not entitled to take CENVAT credit.
The lower authorities confirmed the demand and hence the appellant is before the CESTAT.
The Bench held -
"4. There is no dispute about the fact as the appellant has availed the credit on 01.04.2003 as per Notification no. 25/03 dated 01.04.2003 and declaration have been filed on 01.04.2003 and 25.05.2003. Therefore, if there is any query by the revenue and same has been replied later on does not amount that they filed declaration after the period prescribed. In these terms, I hold that appellant has filed declaration within time and they are entitled to CENVAT credit."
In fine, the appeal was allowed with consequential relief.