2004 (1) TMI 574 - AT - Central Excise

Summary

Issues:
Modvat credit disallowed on the ground of lost invoice copy.

Analysis:
The appeal was filed against the Order-in-Appeal disallowing Modvat credit of Rs. 3,60,000/- as the credit was availed based on the original copy of the invoice. The appellants, engaged in manufacturing wires and cables, received capital goods in their factory and availed the credit after installation, despite the invoice copy being lost due to an employee's accident.

The employee's inability to reach the Range Office for defacement of the invoice led to the loss of the document, which was reported to the police station. Subsequently, the appellants reversed the credit and sought permission to take credit based on the original invoice copy. The adjudicating authority and the Commissioner (Appeals) disallowed the request, stating that the duplicate invoice copy was misplaced after goods were received, not during transit.

The learned JDR argued that as per the rule, credit can be taken based on the original invoice copy if the duplicate was lost in transit, which was not the case here. Referring to a previous Tribunal decision in CCE v. Avis Electronics (P) Ltd., it was clarified that transit extends from the supplier to the office of the excise officer, not just during transportation.

Based on the Tribunal's interpretation of 'transit,' it was concluded that the loss of the invoice copy after goods were received in the factory still constituted a loss during transit. Therefore, the lower authorities' findings were deemed unsustainable, and the matter was remanded for fresh consideration, taking into account the Tribunal's decision and providing a hearing to the appellants. The appeal was disposed of through remand.