2007 (1) TMI 59 - AT - Central Excise

Cenvat/Modvat credit -Alleged that appellant is not liable for credit on the ground that they could not produce any document of evidence on payment of duty on inputs imported by them - Held that allegation was correct

Summary

Issues:
Disallowed Modvat credit based on lack of evidence of duty payment certification from supplier.

Analysis:
The appeal was filed against an Order-in-Appeal disallowing Modvat credit of Rs. 2,03,823.90, which was upheld by the Commissioner (Appeals). The appellant purchased M.S. Scrap/C.I. Scrap from M/s. Steel Authority of India Limited, Bhilai Steel Plant. The goods were sold in lots containing various products, making it impossible for M/s. BSP to mention the amount of duty and rates dispatched. The appellant availed Modvat credit based on sale documents from BSP stating "duty paid goods." The appellant contended that they produced a certificate from BSP certifying the excise duty payment, arguing that the department failed to prove the certificate's inaccuracy. However, the Tribunal found no provision for deemed credit on the item in question, as per Order No. 342/1/88-TRU. The appellant admitted that BSP did not mention the duty amount paid on the inputs, leading them to avail Modvat credit at the lowest rate. The Tribunal concurred with the Commissioner (Appeals) that the appellant failed to provide evidence of duty payment on the inputs, leading to the dismissal of the appeal.