2007 (1) TMI 437 - AT - Central Excise

Summary

Issues:
Denial of credit on the ground of availing credit on a duplicate copy of invoice.

Analysis:
The appellant's contention was that credit was availed before the introduction of the invoice system and subsequent amendments. The appellant argued that after the issuance of Circular No. 68/68-CX in 1994, they immediately filed an affidavit stating the loss of the duplicate copy of the invoice during transportation. The Tribunal had previously remanded a similar case back to the adjudicating authority for reconsideration upon submission of the transporter's affidavit regarding the lost invoice. The appellant relied on a previous decision where credit was allowed in a similar situation.

The revenue's stance was that the appellant had not submitted the transporter's affidavit regarding the lost invoice, leading to the denial of credit. They argued that credit could only be availed on the satisfaction of the Assistant Commissioner based on the duplicate copy of the invoice. However, the appellant's failure to provide the transporter's affidavit was deemed as a valid reason for the denial of credit.

The Tribunal noted that the invoice system was introduced in 1994, allowing credit on the original copy of the invoice. Following a circular clarifying the process, the appellant applied to the Assistant Commissioner by filing an affidavit explaining the loss of the duplicate copy during transit. The Tribunal referenced a case where a similar situation led to credit being allowed, emphasizing the importance of timely communication and guidance from revenue authorities. The Tribunal set aside the impugned order and allowed the appeals based on the precedent and the appellant's actions in line with the circular and legal requirements.

Overall, the judgment highlighted the significance of compliance with procedural requirements, timely communication, and the need for revenue authorities to guide taxpayers appropriately. The decision underscored the importance of providing necessary documentation and following the prescribed procedures to avail credits under the relevant regulations.