2004 (8) TMI 544 - AT - Central Excise

Summary

Issues: Modvat credit denial based on non-production of original G.P., contradictory findings by authorities

The judgment addresses the issue of Modvat credit denial due to the non-production of the original General Permit (G.P.) by the appellants. The appellant's representative argued that the Modvat credit was taken based on a photocopy of the G.P. issued by the manufacturer, which was subsequently endorsed in the appellants' name. They contended that the original G.P., seized by Central Excise Officers, was produced, indicating duty payment. The appellant's representative emphasized that the Modvat credit should not be denied based on the photocopy. On the other hand, the respondent supported the subordinate authorities' decision to deny the credit, citing the absence of the original G.P. as the reason.

Upon reviewing the Order-in-Original and the Order-in-Appeal, it was observed that the Modvat credit denial was primarily due to the non-production of the original G.P. during the credit availing process. The document was in the custody of the Central Excise Division, Patna, and could not be provided by the appellants. The judgment highlighted that the appellants' submission of a Xerox copy of the G.P. for credit was justified, as the original was not accessible to them. The authorities' findings regarding contradictory pleas and lack of duty payment evidence were deemed incorrect. The endorsement from the original consignee to another party was found to be dated and supported by relevant documentation, contradicting the authorities' assertions.

The appellate authority concluded that the Modvat credit denial was unjustified, setting aside the Order-in-Original and the impugned order. The appeal was allowed, providing consequential relief to the appellants. The judgment emphasized the appellants' valid submission of the Xerox copy of the G.P. and highlighted the erroneous findings by the adjudicating and appellate authorities. Ultimately, the decision favored the appellants, overturning the credit denial based on the unavailability of the original G.P.