2002 (1) TMI 1015 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit on the strength of invoices issued by different companies under Central Excise Rules, 1944.

Analysis:
1. The appeal concerned the denial of Modvat credit amounting to Rs. 42,629/- on inputs during June to October, 1995 based on invoices issued by M/s. Bharat Petroleum Corporation Ltd. (BPCL) and M/s. Indian Oil Corporation Ltd. (IOCL). The lower appellate authority rejected the credit, considering all invoices as dealer's invoices and citing non-inclusion of necessary particulars required for Modvat credit under relevant Notifications.

2. The appellant contended that the invoices from IOCL should have been treated as manufacturer's invoices under Rule 52A, not dealer's invoices under Rule 57GG. The advocate argued that the necessary particulars were present in the IOCL invoices and correlation with BPCL invoices was feasible. Additionally, the appellant referenced a Tribunal's Larger Bench decision emphasizing that Modvat credit cannot be denied solely based on incomplete particulars in invoices.

3. The Judge reviewed the submissions and found that the necessary details were present in the BPCL invoices for correlating with IOCL invoices issued under Rule 52A. Moreover, specific IOCL invoices examined were compliant with all required particulars. The Judge noted that the lower appellate authority failed to differentiate between BPCL dealer's invoices and IOCL manufacturer's invoices, leading to an erroneous denial of credit.

4. Relying on the Larger Bench decision and the discrepancies in the lower authority's assessment, the Judge overturned the impugned order and allowed the appeal, emphasizing the sufficiency of details in the invoices for establishing the duty-paid nature of the inputs. The judgment highlighted the importance of correctly categorizing invoices and ensuring compliance with Modvat credit requirements under the Central Excise Rules, 1944.