2008 (7) TMI 826 - AT - Central Excise

Summary

Issues involved: Disallowance of Cenvat credit and imposition of penalty based on the loss of original invoice and reliance on a photocopy, challenge to the decision of the Assistant Commissioner regarding credit eligibility.

The appeal was filed against the Commissioner (Appeals) order disallowing Cenvat credit and imposing a penalty. The rejection was based on the appellant producing only a photocopy of the invoice without a proper explanation for the loss of the original invoice. Additionally, the decision of the Assistant Commissioner, communicated by the Supdtt., stated that credit cannot be taken on the basis of a photocopy, which was not challenged and attained finality.

Upon hearing both sides, the advocate for the appellant argued that substantive benefit should not be denied due to procedural lapses, emphasizing that the order by Supdtt. was not a speaking order. On the other hand, the Department's representative contended that credit cannot be granted based on a photocopy as the original invoice, which was lost, could potentially be used elsewhere.

The judgment highlighted that the appellant failed to demonstrate that the rules in question were pari materia with the judgments relied upon. It was noted that the letter from Supdtt. did not constitute a speaking order, and by not appealing against it, the appellants forfeited the right to claim the admissibility of Cenvat credit. The current Cenvat Credit Rules do not allow for credit based on a photocopy, nor do they provide for the condonation of procedural lapses. Consequently, no prima facie case was established on merit. The appellants were directed to deposit Rs. 75,000 within eight weeks and report compliance by a specified date, with recovery of the balance amount stayed pending the appeal process.