2005 (11) TMI 353 - AT - Central Excise

Summary

Issues:
1. Violation of principles of 'Natural Justice' in not furnishing the verification report of the Superintendent to the assessee.
2. Consideration of documentary evidence by the authorities.
3. Granting Modvat credit based on irregular dates.
4. Remanding the matter for re-consideration of evidence and cross-examination.

Analysis:

1. The appeal in this case arose from an Order-in-Appeal passed by the Commissioner of Customs & Central Excise (Appeals), Guntur, regarding the availing of Modvat credit for HDPE granules. The Revenue contended that the Modvat credit was wrongly availed as the assessee had not received the inputs. The Commissioner (Appeals) upheld the Order-in-Original disallowing the Modvat credit based on a report from the Superintendent and a statement from an individual.

2. The appellant raised concerns about the lack of furnishing the Superintendent's report, alleging a violation of 'Natural Justice.' They argued that the General Manager confirmed the receipt and use of the granules, supported by a letter from the Transport Agency. The appellant claimed that the Assistant Commissioner did not consider these documents, leading to an incorrect order.

3. The learned DR supported the Revenue's position, emphasizing that the goods were received subsequently, and Modvat credit was taken on irregular dates. The contention was that such irregularities should not be granted.

4. The Tribunal found that the order violated principles of 'Natural Justice' by not providing the Superintendent's verification report to the assessee. Additionally, the documentary evidence presented by the appellant, including the transporter's receipt and the General Manager's statement, was not considered by the authorities. Consequently, the impugned order was set aside, and the matter was remanded to the Original authority for re-consideration. The Tribunal directed the re-examination of the evidence, including statutory documents, with an opportunity for cross-examination. The Original authority was instructed to dispose of the matter within three months and furnish the Superintendent's receipt to the assessee, ultimately allowing the appeal through remand.