2010 (7) TMI 408 - AT - Central Excise

Cenvat credit document for availing credit not produced for defacement - assessee could not produce the copies to the authorities for defacement due to non-receipt of copies from DRI - documents were in the custody of the DRI and perhaps they have misplaced, accepted appeal is allowed

Summary

Issues: Denial of credit for bills of entry by jurisdictional Central Excise authorities.

In this case, the dispute revolved around the denial of credit amounting to Rs. 2,33,573/- in connection with 2 bills of entry, as the appellants failed to produce the said bills for defacement by the jurisdictional Central Excise Superintendent. The Commissioner (Appeals) upheld the original authority's decision. The appellants argued that they had provided several documents, including bills of entry from previous years, to the Directorate of Revenue Intelligence (DRI) officers in response to a summons. They claimed that the two disputed bills of entry were surrendered to the DRI, but they were unable to produce copies for defacement as the DRI did not provide them. The jurisdictional Central Excise authorities contended that the appellants were required to produce original duty paying documents within a specific timeframe, which they failed to do. The appellants' failure to produce the documents before the deadline led to the denial of credit. The appellants' representative also cited a previous Tribunal decision in support of their case.

Upon careful consideration of the submissions, the Member (T) noted that the show cause notice was issued for denying credit in multiple cases, but the appellants managed to obtain and produce copies of the duty paying documents from the DRI as and when they were received. The demand was substantially reduced as a result. The Member accepted the appellants' claim that the DRI had collected the bills of entry, including the disputed ones, and the failure to produce copies for defacement was due to non-receipt from the DRI. The records indicated that the DRI had released copies of bills of entry on multiple occasions. Therefore, the Member concluded that the appellants' inability to produce the documents for defacement was justified. Consequently, the order of the Commissioner (Appeals) was set aside, and the appeal was allowed with consequential relief in accordance with the law.