2007 (4) TMI 426 - AT - Central Excise

Summary

Issues involved: Admissibility of Modvat credit based on photocopy of duplicate invoice in case of loss of duplicate copy.

Summary:
1. The appellant availed credit on original invoices as duplicate copy was taken by Sales Tax Authorities during transit. The appellant received inputs in their factory and duty was paid on them. C.A. relied on a decision of Hon'ble Punjab High Court.

2. The authorized representative reiterated the Commissioner (Appeals) findings.

3. The appellant took a stand that credit was availed on original invoice as duplicate was lost in transit. Rule 57G of Central Excise Rules allows credit on inputs received based on original invoice if duplicate is lost, subject to Assistant Commissioner's satisfaction. Commissioner (Appeals) noted that even if credit was taken on original invoice, CEGAT judgment stated proper regularization procedure was not followed.

4. The Hon'ble Punjab & Haryana High Court held that credit taken on original invoice cannot be denied for lack of permission. Following this decision, the order of Commissioner (Appeals) was set aside, and the appeal was allowed with consequential relief.