2005 (11) TMI 318 - AT - Central Excise

Summary

Issues:
Interpretation of conditions under Notification No. 58/97-C.E. for deemed Modvat credit.

Analysis:
The case involved the manufacturer of Tractors and Railway parts availing deemed credit under Notification No. 58/97-C.E. The main issue revolved around the conditions of the said Notification, specifically Para 4, which stated that the provisions applied only to inputs received directly from the manufacturer's factory under an invoice declaring the excise duty payment. The appellant's contention was that deemed Modvat credit was denied in situations where duty had to be discharged under Rule 96-ZP(3) and when reports stated that the appropriate duty was not discharged. The appellant relied on various case laws to support their argument.

The learned JDR highlighted the conditions in the notification, emphasizing the requirement for direct receipt of inputs from the manufacturer's factory under a specific invoice declaration of excise duty payment. He cited case laws to support the view that fulfilling these conditions was essential for claiming deemed Modvat credit. The Tribunal observed apparent differences in approach in previous decisions and decided to refer the matter to the Hon'ble President to constitute a Larger Bench for clarity and finality on the issue.

In conclusion, the judgment highlighted the importance of complying with the conditions specified in Notification No. 58/97-C.E. for availing deemed Modvat credit. The differing interpretations in previous Tribunal decisions led to the decision to refer the matter to a Larger Bench for a conclusive resolution.