2006 (2) TMI 671 - AT - Central Excise

Summary

Issues: Appeal against denial of credit for duty paid goods due to loss of original and duplicate invoices during transit.

Analysis:
1. Issue of Denial of Credit: The appellant, a registered dealer, filed an appeal against the denial of credit by the Commissioner (Appeals) due to the loss of original and duplicate invoices during transit. The appellant received duty paid goods via rail but did not receive the necessary documents through post. The Deputy Commissioner stated that credit could only be allowed on the original copy of the invoice if the duplicate was lost during transit, leading to the denial of credit by the adjudicating authority and subsequent dismissal of the appeal.

2. Appellant's Contention: The appellant argued that despite the loss of original and duplicate invoices during transit, they received the duty paid goods. Citing precedents, the appellant contended that they should not be liable for duty as they were neither a manufacturer nor an assessee as per Rule 2(3) of the Central Excise Rules. Reference was made to Tribunal decisions like Dhaulagiree Polyolefins (Pvt.) Ltd. vs. Commissioner of Central Excise, Calcutta-II and J.V. Strips Ltd. vs. Commissioner of Central Excise, Delhi, where credit was allowed based on extra copies of invoices upon actual receipt of duty paid goods.

3. Revenue's Contention: The Revenue argued that as per Central Excise Rules, the duplicate copy of the invoice is a valid duty paying document for credit purposes. If the duplicate copy is lost during transit, the assessee can claim credit based on the original copy of the invoice. Therefore, the denial of credit was justified according to the Revenue.

4. Tribunal's Decision: The Tribunal noted that both the original and duplicate copies of the invoice were lost during transit. Observing that the extra copy of the invoice, bearing the appellant's name, corresponded to duty paid goods cleared by the appellant's refinery, the Tribunal referred to previous decisions where credit was allowed based on extra copies of invoices in similar circumstances. Consequently, the Tribunal set aside the impugned order, allowing the appeal against the denial of credit for duty paid goods due to the loss of original and duplicate invoices during transit.