2007 (8) TMI 588 - AT - Central Excise

Summary

Issues involved: Challenge to disallowance of Modvat credit u/s Cenvat Credit Rules, 2000 based on photocopies of invoices.

Summary:
The Revenue challenged the Commissioner (Appeals) order setting aside the disallowance of Modvat credit of Rs. 80,562 made by the Assistant Commissioner. The assessee, a manufacturer of ferro alloys, availed credit based on photocopies of invoices. The adjudicating authority found that the assessee never received the invoices in question. The Appellate Commissioner allowed the credit on certified copies of invoices, directing verification of their genuineness. However, it was noted that the Modvat credit was sought only on photocopies, not certified copies of original invoices.

The Appellate Commissioner's decision was based on the premise that misuse of lost invoices for credit by a third party was not possible. However, the Tribunal emphasized the importance of claiming credit based on the duplicate copy of the invoice under which goods are transported. The Tribunal cited previous judgments highlighting the necessity of following prescribed rules for availing Modvat credit, including the requirement to base claims on duplicate copies of invoices.

The Tribunal referenced a circular stating that photocopies should not be accepted for availing Modvat credit. It was established that under the Cenvat credit scheme, there was no scope for claiming credit based on photocopies of invoices. Therefore, the Commissioner's order allowing credit on photocopies was set aside, and the appeal was allowed in favor of the Revenue.

(Order dictated and pronounced in the open Court)