2005 (1) TMI 663 - AT - Central Excise

Summary

Issues:
1. Amendment of cause title in the appeal application.
2. Disallowance of modvat credit by the original authority.
3. Appeal to the Commissioner (Appeals) and grounds for allowing the appeal.
4. Grounds of appeal by the Revenue against the Commissioner (Appeals) order.
5. Validity of invoices and certified copies of Bills of Entry for modvat credit.

Amendment of Cause Title:
The Respondents filed a miscellaneous application seeking an amendment of the cause title in compliance with the High Court's order in a Company Petition. The amendment was requested to change the title from "Vikrant Tyres Ltd." to "J.K. Industries Limited, Vikrant Tyre Plant-I," and the request was allowed.

Disallowance of Modvat Credit:
The Revenue initiated action against the Respondents for availing modvat credit on defective invoices. The original authority disallowed credit amounting to Rs. 1,32,521 citing specific amendments to Rule 57G and the use of invalid documents for claiming credit.

Appeal to Commissioner (Appeals):
The Respondents appealed to the Commissioner (Appeals) who allowed the appeal based on the acceptance of invoices issued by manufacturers from depots and compliance with modvat provisions despite using certified copies of Bills of Entry.

Grounds of Appeal by Revenue:
The Revenue contested the Commissioner (Appeals) decision, citing the violation of Rule 57G and the invalidity of certified copies of Bills of Entry for claiming modvat credit.

Validity of Invoices and Bills of Entry:
During the hearing, it was revealed that most invoices were issued by Registered Dealers, not Manufacturers from Depots. The Tribunal agreed with the Revenue's argument regarding the restriction on credit for dealer invoices issued before August 1996. Modvat credit was allowed only for invoices issued by M/s. J.K. Textiles. Regarding certified copies of Bills of Entry, the Tribunal concurred with the Commissioner (Appeals) that denial of credit was unjustified due to proper goods receipt and compliance with procedures.

In conclusion, the Tribunal partially allowed the Revenue's appeal, restricting modvat credit for specific invoices issued by entities other than M/s. J.K. Textiles and upholding the validity of claiming credit based on certified copies of Bills of Entry where goods receipt and duty payment were duly verified.