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2004 (6) TMI 537 - AT - Central Excise
Issues:
1. Validity of using a photo-copy of the CESTAT's order as a duty paying document for availing credit. 2. Procedure for availing consequential relief in case of disputed credit. Analysis: 1. The appeal was filed by the Revenue against an order-in-appeal passed by the Commissioner (Appeals) concerning the denial of Modvat credit to the respondents engaged in manufacturing billets and steel castings. The respondents had initially availed the credit for inputs used in final products, which was later denied through a show cause notice. The Tribunal allowed the appeal filed by the respondents, leading them to take credit again based on the Tribunal's decision. However, a fresh show cause notice was issued to disallow this credit, arguing that a photo-copy of the CESTAT's order is not a valid duty paying document. The adjudicating authority confirmed the demand, but the Commissioner (Appeals) overturned this decision in favor of the respondents. 2. The Revenue contended that using a photo-copy of the CESTAT's order as a duty paying document is invalid and that the proper procedure for availing consequential relief is through a refund application. However, the Tribunal found that the respondents had not taken any fresh credit based on its decision. The credit in question had been previously availed by the respondents, and the Tribunal's order merely set aside the decision to disallow this credit. Consequently, the Tribunal dismissed the appeal, ruling that there was no merit in the Revenue's argument. The Tribunal upheld the Commissioner (Appeals)'s decision in favor of the respondents. In conclusion, the Tribunal held that the use of a photo-copy of the CESTAT's order as a duty paying document for availing credit was valid in this case, as it was not a fresh credit but a reinstatement of credit previously availed by the respondents. The Tribunal emphasized that the proper procedure for availing consequential relief in such situations was not through a refund application but by reinstating the credit based on the Tribunal's decision.
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