2003 (9) TMI 682 - AT - Central Excise

Summary

Issues: Claim of Modvat credit based on endorsed gate passes discontinued by Notification No. 15/94-CE (NT), dated 3-7-94. Applicability of Circular No. 600/37/2001-CX for credit on gate passes endorsed after 1-4-94.

The judgment addressed the issue of Modvat credit claimed by the appellants amounting to Rs. 78,166.65 based on endorsed gate passes. The consignment of 9 MTs of HDPE was originally transferred by one party to another, with subsequent transfers leading to the appellant. The credit was disallowed due to the discontinuation of the facility of endorsed gate passes by Notification No. 15/94-CE (NT), dated 3-7-94. The lower authorities disallowed the credit with reference to a specific invoice. However, during the hearing, the appellants relied on Circular No. 600/37/2001-CX, dated 19th November, 2001, issued by the Government of India, which highlighted the validity of gate passes endorsed after 1-4-94, subject to certain conditions.

The judgment analyzed the applicability of the circular in the current case and found that all the conditions specified in the circular were met. Therefore, the judgment concluded that there was no basis for denying the credit as per the impugned order. Consequently, the impugned order-in-appeal was set aside, and the appeal was allowed with any consequential reliefs that may be applicable. The judgment emphasized the importance of considering circulars and legal precedents in determining the validity of documents for the availment of credits, ensuring compliance with relevant regulations and notifications.