2007 (4) TMI 440 - AT - Central Excise

Appeal to Appellate Tribunal - Reference to Larger Bench - Withdrawal of - Cenvat/Modvat - Duty paying documents

Summary

Issues:
Entitlement to avail Modvat credit on invoices endorsed for the second time.

Analysis:
The appeals were filed against Orders-in-Appeal passed by the Commissioner of Customs & Central Excise, Bangalore. The main issue in both cases was whether the appellant could avail Modvat credit on invoices endorsed more than once. The lower authorities had disallowed this, leading the appellants to approach the Tribunal. After several proceedings, the matter was referred to a Larger Bench due to a High Court order. However, citing a previous decision in the case of Press Comp International v. CCE, Bangalore, where a similar issue was decided in favor of the appellants, the Tribunal held that Modvat credit could indeed be taken on invoices endorsed multiple times. Consequently, the appeals were allowed with any necessary consequential relief.

This judgment clarifies the interpretation of the law regarding the entitlement to Modvat credit on invoices endorsed more than once. By following the precedent set by the Larger Bench decision in the Press Comp International case, the Tribunal established that such credit is permissible. This ruling provides guidance for future cases involving the same issue and ensures consistency in the application of Modvat credit rules. The decision underscores the importance of legal precedents in resolving similar disputes and upholding the rights of appellants to claim legitimate credits within the framework of the law.

In conclusion, the Tribunal's decision in this case sets a precedent for allowing Modvat credit on invoices endorsed multiple times, based on the earlier ruling in the Press Comp International case. By aligning with the established legal interpretation, the Tribunal upheld the appellants' right to claim such credits, providing clarity and consistency in the application of Modvat credit rules. The judgment serves as a significant clarification on this specific issue and ensures fair treatment for taxpayers seeking to avail of legitimate credits under the law.