2001 (9) TMI 845 - AT - Central Excise

Summary

Issues:
- Eligibility of universal testing machine as capital goods for availing credit under Rule 57Q
- Validity of duty paying documents issued by Public Sector Undertakings for availing credit
- Requirement of particulars in invoices for availing Modvat credit

Eligibility of Universal Testing Machine:
The appeals arose from a common Order in Appeal where the Commissioner (Appeals) allowed the appeal filed by the respondents, determining that the universal testing machine falls within the definition of capital goods for credit under Rule 57Q. The department contended that the invoice used for availing credit did not contain necessary particulars as per Modvat Rules. They cited a judgment emphasizing the importance of printed serial numbers on invoices for Modvat credit. However, the respondents argued that the universal testing machine is essential for controlling parameters in the sugar plant, making it eligible for credit under Rule 57Q. The Tribunal upheld the Commissioner's decision, stating that the machine is crucial for the manufacturing process and thus eligible for credit.

Validity of Duty Paying Documents:
The department argued that the duty paying documents issued by Public Sector Undertakings were invalid due to missing particulars, as required under Rule 57GG. They emphasized that the absence of such details should result in denial of Modvat credit. In contrast, the respondents relied on various judgments supporting the validity of certificates issued by Public Sector Undertakings for availing duty credit. They cited precedents where such certificates were considered valid duty paying documents. The Tribunal agreed with the respondents, affirming that the certificates from Public Sector Undertakings are valid for availing duty credit, as supported by legal precedents.

Requirement of Particulars in Invoices:
The department contended that the absence of specific particulars in the invoices used for availing Modvat credit should lead to denial of credit. They argued that Rule 57GG mandates the inclusion of certain details in invoices as a procedural requirement. However, the respondents asserted that any deficiencies in the invoices were curable and did not invalidate the duty credit claim. They referenced previous cases where certificates from Public Sector Undertakings were deemed sufficient evidence for duty payment. The Tribunal concurred with the respondents, emphasizing the validity of certificates issued by Public Sector Undertakings as acceptable duty paying documents, thereby rejecting the department's appeal.