Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2003 (12) TMI AT This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2003 (12) TMI 529 - AT - Central Excise

Issues: Denial of Modvat credit on capital goods, Denial of Modvat credit on inputs, Imposition of penalty

In the judgment delivered by the Appellate Tribunal CESTAT, Mumbai, the appellant's appeal was related to the denial of Modvat credit of Rs. 1,41,690/- and the imposition of a penalty of Rs. 15,000. The denial of credit on capital goods was based on the lack of precise description, which was contested by the appellant. The Tribunal found that the declaration under Rule 57T(1) provided adequate description based on brand name and specification, and the classification was clear. The Asstt. Commissioner should have sought further details before disallowing the credit, as the items were eligible for Modvat credit. The objection regarding defective invoices issued by M/s. IOC Ltd. was also addressed, with the Tribunal noting that denial of credit based on non-intimation of software details on computer-generated invoices was a technical offense and should not invalidate the credit claim. The circular issued by the Board supported this stance. The Tribunal concluded that there was no valid ground to claim that the inputs were not duty paid and allowed the appeal, setting aside the orders of the lower authorities.

The judgment highlighted the importance of precise description in claiming Modvat credit on capital goods and emphasized that disallowing credit based on inadequate description was unjustified unless it could be proven that the items did not qualify as capital goods. The Tribunal also clarified that technical offenses related to invoice details should not result in the denial of credit to end-users, especially when the deficiency was attributed to the supplier and not the appellants. Overall, the Tribunal's decision favored the appellant by overturning the denial of Modvat credit and penalty imposed by the lower authorities, based on a thorough analysis of the issues raised in the appeal.

 

 

 

 

Quick Updates:Latest Updates