2010 (9) TMI 867 - HC - Central Excise

Whether Tribunal has acted according to law, Modvat/Cenvat credit can be allowed on the basis of photocopy/extra copy of the invoice - invoices were duly verified by Range Superintendent after getting satisfied from the concerned, departments has allowed Modvat credit, for the purpose of deciding the disputed question of fact, the Tribunal is the final authority, no substance in this appeal, accordingly dismissed

Summary

Issues:
1. Modvat/Cenvat credit on the basis of photocopy/extra copy of the invoice.
2. Demand of interest under Rule 12 of Cenvat Credit Rules, 2002.
3. Modification of order without finding of breach of law, rules, or regulations.

Modvat/Cenvat Credit on the basis of photocopy/extra copy of the invoice:
The appellant appealed under Section 35-G of the Central Excise Act against the order of the Customs, Excise & Service Tax Appellate Tribunal, questioning the allowance of Modvat credit to M/s. Hira Steels Ltd. based on photocopies of invoices from Bharat Petroleum Corporation Limited and Steel Authority of India Limited. The appellant argued that the Tribunal should not have considered photocopies without original or duplicate copies issued by the suppliers. However, the High Court noted that the invoices were verified by the Range Superintendent of B.P.C.L. and S.A.I.L., a fact undisputed by the department. The High Court held that the Tribunal, after satisfying itself with the verification, was the final authority on the matter of Modvat credit. Consequently, the appeal was dismissed as lacking substance.

Demand of interest under Rule 12 of Cenvat Credit Rules, 2002:
Another issue raised in the appeal was the demand of interest under Rule 12 of Cenvat Credit Rules, 2002. The appellant questioned the sustainability of this demand. However, the High Court did not provide a detailed analysis or ruling on this specific issue in the judgment, as the focus was primarily on the Modvat credit aspect. Therefore, the judgment did not offer a specific resolution or reasoning regarding the demand of interest under Rule 12.

Modification of order without finding of breach of law, rules, or regulations:
The final issue raised in the appeal concerned the modification of the order by the Tribunal without a finding that the original order was in breach of law, rules, or regulations. The appellant challenged the Tribunal's authority to modify the order without such a finding. However, the High Court reiterated that the Tribunal, having verified the invoices and satisfied itself with the documentation, was the final authority on the matter. Since no breach of law or regulations was identified, the High Court upheld the Tribunal's decision to allow the Modvat credit and dismissed the appeal accordingly.