2011 (6) TMI 106 - AT - Central Excise

Waiver of pre-deposite - Denying the benefit of modvat credit on the ground that the same has been availed on the basis of fake and fictitious invoices issued by the non existent weavers - Held that the Tribunal in the case of M/s. Bhagwati Silk Mills and others, 2011 -TMI - 203593 - CESTAT, AHMEDABAD , has considered the issue in the identical appeals of the other appellants similarly situate and has remanded the matter to the original adjudicating authority for de-novo decision in the light of the observations made therein - Thus, the appeal is dismissed.

Summary

Issues:
1. Denial of modvat credit based on fake and fictitious invoices.
2. Dismissal of appeals by Commissioner (Appeal) for non-compliance with pre-deposit condition.
3. Remand of the matter to original adjudicating authority based on precedent decision.

Analysis:
1. The judgment addresses the issue of denial of modvat credit to the appellants due to the utilization of fake and fictitious invoices from non-existent weavers. The Tribunal, in a previous case involving M/s. Bhagwati Silk Mills and others, had remanded a similar matter to the original adjudicating authority for a fresh decision. The presiding judge, Mrs. Archana Wadhwa, noted this precedent decision and decided to follow the same approach. The judgment sets aside the impugned order and remands the matter to the original adjudicating authority for reevaluation in light of the legal principles established in the previous case.

2. Another issue addressed in the judgment pertains to the dismissal of appeals by the Commissioner (Appeal) due to non-compliance with the directive to deposit 20% of the duty amount. Typically, such cases would be remanded to the Commissioner (Appeal) for a decision on merits. However, considering that similar appeals are being remanded to the original adjudicating authority based on the precedent decision, Mrs. Archana Wadhwa decided to set aside the impugned order and remand the matter to the original adjudicating authority. This decision also applies to the stay petitions and appeals related to the case.

3. The final issue tackled in the judgment involves the overall remand of the matter to the original adjudicating authority in line with the precedent set by the Tribunal in the case of M/s. Bhagwati Silk Mills and others. By aligning with the approach taken in the previous case, the judgment ensures consistency in the application of legal principles and directives. The decision to remand the matter to the original adjudicating authority signifies a commitment to ensuring a fair and thorough reconsideration of the issues at hand, guided by established legal precedents and observations made in relevant cases.