2004 (11) TMI 500 - AT - Central Excise

Summary

Issues involved: Denial of modvat credit to the appellants

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi addressed the issue of denial of modvat credit to the appellants. The appellants had availed the Modvat credit on invoices marked as original for buyers, received from suppliers. The adjudicating authority initially allowed the credit, citing compliance with the procedure outlined in Trade Notice No. 117/94 of Chandigarh Commissionerate. However, the learned Commissioner (Appeals) disallowed the credit, stating it could not be claimed on a photostat copy marked as original for buyers. The Tribunal noted that the invoices were indeed marked as original by the supplier and supplied to the appellants, as evidenced by a letter. The duty paid nature of the goods and receipt through the invoices were undisputed by the department. The Tribunal found that the appellants had followed the prescribed procedure in the Trade Notice, and the adjudicating authority rightly allowed the Modvat credit. Consequently, the impugned order of the Commissioner (Appeals) was set aside, and the appeal was allowed with consequential relief as per law.

This judgment highlights the importance of adhering to prescribed procedures for claiming modvat credit. It emphasizes the significance of documentary evidence, such as original invoices marked by suppliers, in supporting credit claims. The Tribunal's decision underscores the need for consistency in applying relevant trade notices and regulations to ensure fair treatment of taxpayers. It also serves as a reminder to authorities to consider all relevant facts and evidence before denying credit to avoid unjust outcomes. Overall, the judgment provides clarity on the requirements for claiming modvat credit and upholds the principle of following established procedures for tax benefits.