2006 (2) TMI 437 - AT - Central Excise

Summary

Issues:
Challenge to grant of Modvat credit based on photocopy of invoices.

Analysis:
The Appellate Tribunal CESTAT, New Delhi heard an appeal where the Revenue challenged the grant of Modvat credit by the Commissioner (Appeals) on the basis that the credit claim was supported by photocopies of invoices. The Revenue argued that Modvat credit cannot be claimed against photocopies of invoices, citing a previous judgment. On the other hand, the respondent, represented by a consultant, contended that the Revenue's objections were unfounded. The respondent had submitted duplicate copies of invoices to the Central Excise Superintendent, along with a receipt, which the consultant argued should have been objected to at the time of submission if there were any issues with the documents.

The Tribunal found that the Revenue's objection was not sustainable based on the evidence presented. The Commissioner (Appeals) and the respondent's letter dated 23-8-1995 supported the fact that the revenue authorities had accepted the duplicate copies of invoices without raising any objections. Therefore, it was deemed inappropriate for the Revenue to later claim that the documents were merely photocopies. Additionally, the Tribunal noted that the purchases were made from a Government Organization, MMTC Ltd., and the details on the invoices regarding duty payment and sale prices were undisputed. As a result, the Tribunal concluded that there was no merit in the Revenue's appeal and rejected it.

In conclusion, the Tribunal upheld the grant of Modvat credit to the respondent, emphasizing that the Revenue's objections were not valid given the acceptance of duplicate copies of invoices without any prior objections and the undisputed nature of the purchases from MMTC Ltd.