2004 (6) TMI 533 - AT - Central Excise

Summary

Issues:
Interpretation of Rule 7(1)(b) of Cenvat Credit Rules, 2002 regarding Modvat credit on a supplementary invoice. Applicability of Tribunal judgment in the case of Eicher Limited [2003 (156) E.L.T. 485] to the present case.

Analysis:
The appellant was required to pre-deposit duty of Rs. 85,66,019 for the appeal. The Commissioner held that Modvat credit cannot be extended on a supplementary invoice if the duty was not paid when the goods were received. The appellant argued that Modvat credit can be claimed unless there are allegations of suppression of facts, wilful misstatement, fraud, or collusion. The appellant cited the Tribunal judgment in the Eicher Limited case as applicable. The Department disagreed and requested the appellants to comply.

Upon careful consideration of Rule 7(1)(b), it was noted that a provision allows for considering a supplementary invoice for Modvat credit. The appellants had taken Modvat credit on a supplementary invoice issued by HPCL, even though the goods were cleared in 1993 but duty was paid later. The Tribunal in the Eicher Ltd. case accepted a supplementary invoice under Rule 52A of the erstwhile Central Excise Rules, 1944 for Modvat credit. The Tribunal referenced a clarificatory notification and a judgment by the Madras High Court in a related case. Considering the Tribunal's judgment and the provision of Rule 7(1)(b) of Cenvat Credit Rules, 2002, it was concluded that the appellants had rightly taken Modvat credit. The stay application was allowed, and the appeal was scheduled for an out-of-turn hearing on 10th September, 2004.