9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (7) TMI 567 - AT - Central Excise
Issues:
1. Denial of Modvat credit against payment of additional duty of Customs due to lack of separate certificate from Customs Authorities as directed by Settlement Commission. Analysis: The judgment deals with the issue of denial of Modvat credit to the appellants against the payment of additional duty of Customs. The Settlement Commission had directed the appellants to deposit the additional duty and obtain certificates from Customs Authorities for the Excise Authorities to consider granting Modvat credit. However, the Customs Authorities did not issue a separate certificate as directed, leading to the denial of Modvat credit by the Adjudicating Commissioner. The Tribunal observed that the Customs Authorities had not issued a separate certificate, but the duty paying documents were attested by them. The Adjudicating Commissioner raised objections regarding the lack of a certificate and the clarity on the duty paid components. The Tribunal emphasized the relationship between Customs and Excise Departments as sister departments under the same Board, suggesting that verification could have been done internally. It was noted that if Customs Authorities failed to issue a certificate despite Settlement Commission's directions, the appellants should not be penalized. As a result, the Tribunal waived the pre-deposit, set aside the impugned order, and remanded the matter to the Adjudicating Commissioner. The Commissioner was directed to re-consider the claim after verifying the payments with Customs Authorities and providing the appellants with a fair hearing opportunity. The appellants were instructed to submit a detailed statement with supporting documents listing all payments made towards additional duty for verification. In conclusion, the appeal was allowed by way of remand, highlighting the importance of proper verification and cooperation between Customs and Excise Departments to ensure the rightful grant of Modvat credit against the payment of additional duty of Customs.
|
