2007 (9) TMI 613 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit/Cenvat credit on inputs due to lack of thickness specification on invoices.

Analysis:
The appeal challenges the Order-in-Original that set aside a duty demand of Rs. 27,91,555 against the appellant. Despite the respondent's absence, the appeal proceeds for disposal. The core issue revolves around the denial of Modvat credit/Cenvat credit to the appellant based on the alleged inability to use certain inputs for final product manufacturing. Specifically, the dispute centers on tin plates received without thickness specification on the invoices. The adjudicating authority concluded that the lack of thickness specification made the allegations unsustainable, leading to the demand set-aside.

The revenue, in its appeal, argued that the appellant failed to provide evidence regarding the thickness of the tin plates to claim credit. The absence of thickness specification on the invoices was deemed as the appellant not utilizing the received tin plates. However, upon reviewing the records, it was evident that the appellant received tin plates of various thicknesses for can manufacturing. The allegations in Annexure "B-3" aimed to deny credit based on unspecified thickness.

In a related appeal, the Tribunal had previously ruled in favor of the appellant concerning tin plates with thickness below 0.24 mm, indicating that the credit was valid. The current appeal highlights the inconsistency in the allegations, as the show cause notice lacked specific details to support the claim that the appellant did not receive the tin plates as mentioned. Given the precedent set by the Tribunal in the appellant's favor previously, the current appeal by the Revenue lacks merit. The Tribunal rejected the appeal, citing the previous decision in the appellant's case as a basis for the rejection.