2007 (7) TMI 522 - AT - Central Excise

Summary

Issues involved:
The issues involved in this case are the admissibility of modvat credit on inputs based on bill of entry details and compliance with statutory requirements under rule 57G of the Central Excise Rules, 1944.

Admissibility of Modvat Credit on Inputs:
The appellant had availed modvat credit amounting to Rs. 1,28,806/- based on a bill of entry dated 22-8-1998. The Revenue contended that the credit was inadmissible as the bill of entry was not addressed to the appellant or endorsed to them. The adjudicating authority held that since the bill of entry did not mention the appellant as the recipient, the credit was not admissible. Additionally, a demand of Rs. 1335/- was imposed due to non-declaration of inputs as per rule 57G.

Compliance with Rule 57G Requirements:
Regarding another bill of entry dated 22-3-1998, the credit was denied because the manufacturing unit's name was not mentioned, although the appellant's name and address were indicated. The Commissioner (Appeals) held that since the unit's name was not specified, the credit could not be allowed. However, the penalty amount was reduced from Rs. 25,000/- to Rs. 5000/-.

Interpretation of Rule 57G and Precedent:
The Tribunal analyzed the provisions of sub-rule (3) of rule 57G, emphasizing that the requirement was for inputs to be received under an enumerated document. Referring to a previous judgment, it was established that the bill of entry need not necessarily be in the name of the manufacturer to claim modvat credit. The Tribunal clarified that the manufacturer could receive goods imported by another entity, as long as the necessary documents showed the goods were received in original condition under the specified document.

Conclusion:
The Tribunal ruled in favor of the appellant, stating that the modvat credit under the bill of entry dated 22-8-1998 should not have been denied. It was emphasized that the address details in the bill of entry were not crucial for determining the admissibility of modvat credit. Therefore, the appeal was allowed, and the modvat credit amounting to Rs. 1,28,806/- was deemed admissible to the appellant.