1999 (4) TMI 652 - AT - Central Excise

Summary

Issues:
Appeal against Collector of Central Excise (Appeals) order for quashing and other reliefs.

Analysis:
The appellant, engaged in manufacturing rubber products, imported synthetic rubber and availed Modvat credit under Rule 57A of the Central Excise Rules. Due to the loss of the original bill of entry during transportation, the appellant reconstructed a certified copy and took credit. The department issued a show cause notice, denying the credit based on Circular No. 25/92-CX-4, stating Modvat credit cannot be taken on a certified copy of the bill of entry. The appellant argued that loss of the bill of entry is a technical defect and cited precedents where Modvat credit was allowed based on certified copies. The respondent contended that Rule 57G(2) requires the original triplicate bill of entry and cited cases where Modvat credit was disallowed based on certified copies. The main issue was whether there were sufficient grounds to allow the appeal.

The Tribunal analyzed the provisions of Rule 57G, 57A, and 57I of the Central Excise Rules. It noted that both lower authorities relied on Circular No. 25/92-CX-4 and Rule 57G(4), emphasizing the necessity of the original document for claiming Modvat credit. The Collector (Appeals) also pointed out Rule 57G(2) which prescribes duty paying documents accompanying goods. Despite the original bill of entry accompanying the goods but not reaching the appellant's factory, the appellant had a certified third copy of the bill of entry, attested by Customs Authority, showing duty payment details. The Tribunal referred to precedents where Modvat credit was allowed based on certified copies and physical receipt of duty paid goods. It distinguished cases where Modvat credit was disallowed due to lack of certified copies or supplier certificates. The Tribunal concluded that the appellant had sufficient grounds to appeal, allowing the appeal and setting aside the impugned order.

In summary, the Tribunal found in favor of the appellant, allowing the appeal against the Collector of Central Excise (Appeals) order. The decision was based on the appellant's establishment of duty payment on imported goods through a certified copy of the bill of entry, despite the loss of the original document during transportation. Precedents supporting the acceptance of certified copies for claiming Modvat credit were crucial in the Tribunal's decision, emphasizing the importance of physical receipt of duty paid goods and adherence to relevant provisions of the Central Excise Rules.