2001 (11) TMI 731 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat credit on extra copy of invoices.
2. Confirmation of the Assistant Collector's order by the Commissioner (Appeals).
3. Grounds of appeal challenging the denial of credit and lapses in the decision-making process.
4. Consideration of withdrawal of appeal by the appellant based on verification of clients' eligibility for credit.
5. Argument regarding the extra copy of the invoice not being a prescribed document under Modvat rules.
6. Decision on the appeal considering the submissions made by both parties.

Analysis:

1. The original authority denied credit on extra copies of invoices and directed the reversal of wrongly availed credits. The Assistant Collector's order was confirmed by the Commissioner (Appeals), stating it was correct and in accordance with the law, leading to the appellant filing an appeal challenging this denial of credit.

2. The grounds of appeal included arguments that once goods were received and accounted for, there should be no bar on passing Modvat credit on extra copies of invoices. The appellant also contended that the duty paid nature of goods received was not in dispute and could have been condoned. Issues regarding permission for credit availing and bona fides of the appellant were raised, emphasizing the validity of invoices as described by the manufacturer.

3. During the hearing, the appellant's representative indicated a willingness to withdraw the appeal pending verification of clients' eligibility for credit. The appellant argued they were entitled to Modvat credit based on Board and Ministry instructions, especially in cases of lost original duty credit documents, which had not been considered by lower authorities.

4. The revenue contended that extra copies of invoices were not prescribed Modvat documents and lacked the necessary declaration for such purposes. They highlighted the absence of affidavits or corroborative documents to support claims of lost documents and reconstructions.

5. The presiding judge rejected the request for further adjournment to verify clients' eligibility, emphasizing the delay in verification despite previous opportunities. The judge upheld the lower authorities' orders but added a condition for considering lost document authorizations if filed as per Board or Ministry instructions.

6. Ultimately, the appeal was dismissed with the judge's observations and rulings on the matter, providing clarity on the denial of Modvat credit on extra copies of invoices and the need for compliance with prescribed documentation for credit claims.