2002 (8) TMI 627 - AT - Central Excise

Modvat/Cenvat - Duty paying documents - Bills of entry - Modvat/Cenvat - Duty paying documents

Summary

Issues: Disallowance of Modvat credit under Rule 57-I of the Rules and imposition of penalty.

Analysis:
1. The appeal was filed against the Order-in-Appeal affirming the Order-in-Original disallowing Modvat credit and imposing a penalty on the appellants.
2. The appellants claimed Modvat credit based on bills of entry, which were partially disallowed due to alleged tampering with the importer's name and address.
3. The appellants argued that the department did not contest the genuineness of the bills of entry, and goods were received without doubt on execution of bonds, indicating no suspicion on the duty paid nature of the goods.
4. Regarding an invoice in the name of the head office, the appellants contended that it was endorsed to the manufacturing unit, and prior intimation about this arrangement was provided to the department.
5. The JDR supported the impugned order disallowing the Modvat credit.
6. After hearing both sides and reviewing the record, the judge found that the goods were released to the appellants on execution of bonds without any investigation into the genuineness of the bills of entry.
7. The judge concluded that the Modvat credit disallowed on the bills of entry and the invoice was improper as there was no evidence to suggest non-receipt or non-utilization of goods by the appellants or that the goods were non-duty paid.
8. Consequently, the judge set aside the Order-in-Appeal, allowing the appeal of the appellants with consequential relief.