2005 (1) TMI 542 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit on the ground of availing credit beyond six months from the date of certificate under Rule 57E of the Central Excise Rules.

Analysis:
The appellant argued that they purchased inputs from a supplier who had paid the differential duty and obtained certificates under Rule 57E, based on which the appellant took credit within six months from the date of the invoices. The appellant contended that since they took credit based on the invoices within the prescribed time, the denial of credit was unjustified. They also cited a Tribunal decision to support their position.

The Revenue, represented by the JDR, contended that Rule 57G does not mention supplementary invoices as valid documents for taking credit. As the appellant availed credit after six months from the certificate issue date under Rule 57E, the Commissioner (Appeals) rightly disallowed the credit.

The Tribunal, after considering both arguments, noted that the appellant availed Modvat credit based on invoices issued by the manufacturer's depot, which were not prescribed documents under Rule 57G(3) at the relevant time. The Tribunal upheld the Commissioner (Appeals)' decision, emphasizing that Rule 57G(3) did not allow credit based on supplementary invoices from a depot or dealer. As the appellants failed to take credit within six months from the date of the certificate issued under Rule 57E, the appeal was rejected.

In conclusion, the Tribunal found no merit in the appeal, upholding the Commissioner (Appeals)' decision to deny the Modvat credit as the appellant did not adhere to the prescribed documents and timeline for availing the credit. The Tribunal clarified that supplementary invoices from a depot or dealer were not valid for claiming Modvat credit under Rule 57G(3) at the relevant time.