2001 (7) TMI 907 - AT - Central Excise

Summary

Issues:
1. Disallowance of Modvat credit on rubber stamped invoice.
2. Disallowance of Modvat credit on fibre glass.
3. Disallowance of Modvat credit on cots and aprons.

Analysis:
1. The appeal is against the disallowance of Modvat credit on the rubber stamped invoice. The respondents claimed Modvat credit based on a quadruplicate copy of an invoice rubber stamped as "duplicate for transporter." However, the Assistant Commissioner disallowed the credit, arguing that the invoice should be clearly printed as "duplicate for transporter" to qualify for Modvat credit under Rule 57G read with Rule 57Q. The Tribunal upheld the disallowance, stating that a rubber-stamped invoice does not meet the criteria for a modvatable document under the rule.

2. The issue of disallowance of Modvat credit on fibre glass was also raised. The respondents availed Modvat credit on fibre glass as capital goods under Rule 57Q. The Assistant Commissioner denied the credit, contending that fibre glass did not meet the definition of capital goods under Rule 57Q(1) as it was used for insulation purposes in the manufacturing area and not directly in the production process of excisable goods. The Tribunal agreed with the Assistant Commissioner, stating that fibre glass used for maintaining humidity in the ceiling of the plant did not qualify as a capital good under Rule 57Q.

3. Additionally, the respondents filed Counter Objections regarding the disallowance of Modvat credit on cots and aprons used in their machines. They argued that Modvat credit should be available on parts of machines and machinery under Rule 57A. The Tribunal noted that this issue was not properly considered by the lower authorities in light of a previous decision. Consequently, the matter was remanded for further consideration, and the appeal concerning Modvat credit on cots and aprons was sent back to the original authority for a fresh decision.

In conclusion, the Tribunal upheld the disallowance of Modvat credit on the rubber stamped invoice and fibre glass, while remanding the issue of Modvat credit on cots and aprons for reconsideration. The appeal and cross-objections were disposed of accordingly.