2004 (12) TMI 557 - AT - Central Excise

Summary

Issues:
Denial of benefit of Notification No. 58/97-C.E. (N.T.) regarding deemed Modvat credit.

Analysis:
In the present case, the issue revolves around the denial of the benefit of Notification No. 58/97-C.E. (N.T.) in relation to the deemed Modvat credit to the appellant. The appellants were denied the deemed Modvat credit as they failed to prove that the manufacturers/suppliers of the inputs had discharged their duty liability as required by law. The appellants abandoned their claim for deemed Modvat credit on inputs from certain suppliers due to missing necessary declarations on invoices. Consequently, the order disallowing deemed Modvat credit from these suppliers was upheld.

Analysis:
Furthermore, the appellants procured inputs from two other suppliers, and the invoices from these suppliers contained declarations confirming the discharge of duty as per Rule 96ZP of the Rules. This declaration was deemed sufficient to meet the requirements of Notification 58/97. Citing a previous Tribunal order for support, the impugned order denying Modvat credit on inputs from these suppliers was deemed unsustainable and was set aside.

Analysis:
Regarding the imposition of a penalty, the appellants argued that they could not be penalized as they were reliant on suppliers for correct declarations. However, the Tribunal disagreed, stating that it was the responsibility of the appellants to ensure compliance with the law regarding declarations to avail the Notification's benefits. Due to a lack of due diligence on the part of the appellants, a penalty was deemed appropriate but was reduced to Rs. 20,000.

Analysis:
In conclusion, the impugned order was set aside or modified based on the above considerations. The appeals of the appellants were disposed of accordingly, with the judgment dictating the decision on December 8, 2004.