2008 (1) TMI 690 - AT - Central Excise

Summary

Issues:
1. Whether the credit claimed by the appellant based on invoices without proper markings can be denied.
2. Whether the requirements under Rule 57G(6) are mandatory for extending credit.

Issue 1:
The case involved the appellant claiming credit of Rs. 2,87,405/- based on invoices lacking necessary markings. The lower adjudicating authority dropped the show cause notice, which was upheld by the Commissioner (Appeals) citing that the goods were received and authenticated by the Superintendent, hence credit cannot be denied. The Commissioner relied on previous judgments emphasizing that procedural lapses should not lead to credit denial. The Revenue argued that Rule 57G(6) requirements are mandatory. The Tribunal noted that the goods were received and used in manufacturing without denial by the Revenue. Even if the invoices lacked markings, once authenticated by the Superintendent, their genuineness cannot be questioned. The Tribunal rejected the Revenue's appeal, stating that lacking details in invoices should have been addressed by the Superintendent during authentication.

Issue 2:
The Revenue contended that Rule 57G(6) requirements are mandatory, and non-compliance should result in credit denial. However, the Tribunal found that the appellant received the goods, used them in manufacturing, and this fact was not disputed by the Revenue. The Tribunal emphasized that if the Superintendent authenticated invoices lacking certain details, the credit cannot be denied based on those grounds. The Tribunal held that the lack of markings on invoices should have been rectified during authentication and that the credit claim cannot be rejected solely on procedural grounds. Therefore, the Tribunal rejected the Revenue's appeal, concluding that the credit claim was valid despite the missing markings on the invoices.

This detailed analysis of the judgment covers the issues comprehensively, providing an in-depth understanding of the Tribunal's decision regarding the credit claim based on invoices without proper markings and the mandatory nature of Rule 57G(6) requirements.