2004 (12) TMI 553 - AT - Central Excise

Summary

Issues:
1. Error apparent on the face of the record regarding denial of credit based on gate passes with more than two endorsements.
2. Admissibility of Modvat credit based on gate passes with multiple endorsements.
3. Proper interpretation of the law regarding availment of credit on gate passes with multiple endorsements.

Analysis:
1. The issue of error apparent on the face of the record arose due to the Tribunal's Final Order denying credit based on gate passes with multiple endorsements. The applicants contended that the denial was incorrectly based on endorsed invoices, citing a Larger Bench decision. The Assistant Commissioner initially held that credit availed on gate passes with more than two endorsements was admissible, which the Revenue contested. The Commissioner (Appeals) upheld the extension of credit on invoice strength but disallowed credit on gate passes. However, the Tribunal found an error in treating the case as related to endorsed invoices, leading to the allowance of the Review Application (ROM).

2. The judgment highlighted the admissibility of Modvat credit based on gate passes with multiple endorsements, citing precedents where such credit was deemed permissible by the Tribunal. The Tribunal emphasized that the availment of credit by the appellants on gate passes with more than two endorsements was lawful. This decision was based on the understanding that Modvat credit could be claimed on gate passes bearing multiple endorsements, as established in previous Tribunal rulings, such as SBS Organics v. CCE.

3. The Tribunal's analysis focused on the proper interpretation of the law concerning the availment of credit on gate passes with multiple endorsements. By overturning the Commissioner (Appeals) decision, the Tribunal clarified that the denial of credit on gate passes with multiple endorsements was incorrect. The judgment emphasized that the denial was not justified under the law, as Modvat credit could indeed be availed on gate passes with more than two endorsements. Consequently, the Tribunal allowed the appeal of the assessee, setting aside the impugned order of the Commissioner (Appeals) and upholding the admissibility of credit based on gate passes with multiple endorsements.