2004 (7) TMI 538 - AT - Central Excise

Summary

Issues:
1. Disallowance of Modvat credit of Rs. 1,47,356.
2. Rejection of Rs. 42,335 credit based on expired gate passes.
3. Denial of Rs. 1,05,021 credit based on subsidiary certificate validity.

Analysis:
1. The appellant's appeal challenged the disallowance of Modvat credit amounting to Rs. 1,47,356. The lower authorities rejected Rs. 42,335 of this claim due to the use of gate passes issued in September and November 1993, which were invalid for claiming credit in July 1994. The appellant conceded the impermissibility of this amount.

2. The remaining Rs. 1,05,021 credit was denied as it was based on a subsidiary certificate issued on 4th April 1994, after the certificate's validity ceased as per Notification No. 16/94-C.E. The Commissioner (Appeals) relied on specific judgments, including one related to the rescinding of a notification. However, the tribunal found these judgments not directly relevant to the case at hand.

3. The appellant relied on Notification No. 16/94 dated 30th March 1994, which allowed credit based on subsidiary certificates issued before 1st April 1994 and utilized by 30th June 1994. As the credit in question met these criteria, it was deemed valid. Consequently, Rs. 1,05,021 credit was allowed, while the remaining amount was rejected. The tribunal modified the lower authorities' orders accordingly, partially allowing the appeal.