2007 (5) TMI 548 - AT - Central Excise

Summary

Issues involved: Appeal against Order of the Commissioner (Appeals) regarding denial of Cenvat credit under Rule 57G and Rule 57H for consignments received in different periods.

Summary:
1. Issue of Cenvat credit under Rule 57G:
The appellant claimed Cenvat credit for consignments received in November 1993, March 1994, and April 1994, as well as in August and September 1994. The original authority initially decided against the appellant, leading to a de novo consideration by the Commissioner (Appeals). The subsequent orders upheld the denial of credit.

- The appellant argued that the consignments were received in the factory, and the denial of credit was unjustified.
- Citing a Tribunal decision, the appellant contended that credit should be allowed if there is no dispute about the receipt and utilization of inputs.
- The Department argued that the bills of entry for some consignments were not in the appellant's name, making them invalid for claiming Cenvat credit.

The Tribunal found that credit for consignments covered by specific bills of entry in the appellant's name should be allowed, subject to confirmation by the original authority. However, credit for consignments covered by other bills of entry procured on a high sea sale basis was rejected.

2. Decision and Penalty:
The appeal was partly allowed for specific consignments, while credit for others was rejected. The penalty imposed was set aside based on the circumstances of the case.

This judgment clarifies the eligibility criteria for claiming Cenvat credit under Rule 57G and Rule 57H, emphasizing the importance of valid duty paying documents in the name of the recipient for such claims.