2004 (2) TMI 582 - AT - Central Excise

Summary

Issues: Denial of Modvat credit due to loss of original and duplicate copy of invoice for transporter.

The judgment pertains to an appeal filed against the denial of Modvat credit amounting to Rs. 58,971.92 to the appellants due to the loss of both the original and duplicate copies of the invoice for the transporter who transported the goods. The appellants lodged an FIR with the police regarding the loss, informed the Superintendent of Central Excise, and requested verification of the material in their factory premises. The impugned order indicated that the Range Office conducted the verification.

Upon review, it was found that the Modvat credit was rejected on the basis that it could not be claimed using the extra copy of the original invoice. However, the judge disagreed with this reasoning, stating that when both the original and duplicate copies of the transporter's invoice were lost, and the appellants provided the FIR copy to the competent authority, along with verification of the duty paid nature of the goods, the Modvat credit should not have been disallowed. The judge emphasized that the right to claim Modvat credit on duty paid inputs is a substantive right granted to the assessee by statutory rules, which should not be forfeited due to technical lapses like loss or misplacement of documents. The judge distinguished the present case from a previous ruling, highlighting that in this instance, the loss of both copies was proven, justifying the allowance of Modvat credit.

Consequently, the judge set aside the impugned order of the Commissioner (Appeals) and allowed the appeal of the appellants, granting them any consequential relief permissible under the law.