2008 (2) TMI 213 - AT - Central Excise

Duty paid plates received in the factory used in the fabrication of parts of the plant - these are used in fabrication or modification of the plant and machinery therefore the same becomes part and accessory of plant and machinery hence are liable for credit - as per the Rule 57G the duplicate copy of bill of entry generated in EDI System is valid duty paying document credit taken on triplicate copy of bill of entry is rightly denied because it is not valid duty paying document

Summary

Issues:
1. Denial of credit for plain plates used in fabrication of plant parts.
2. Denial of credit based on the use of triplicate copy of bill of entry.

Analysis:
1. The appellant appealed against the denial of credit for plain plates used in the fabrication of plant parts. The appellant argued that the plates are essential components of the plant and machinery, making them eligible for credit. The Commissioner acknowledged their use in the fabrication process. The Revenue contended that the plates did not fall under specified goods for credit under Rule 57Q. However, the Tribunal found that as per the definition of capital goods, parts and components like the steel plates are entitled to credit. Consequently, the denial of credit amounting to Rs. 1,32,921 was deemed unsustainable and set aside.

2. Regarding the denial of credit based on the use of a triplicate copy of the bill of entry, the appellant justified their action by stating that the duplicate copy was lost. They referred to relevant Board Circulars and court decisions to support their case. The Revenue argued that as per Rule 57G, the duplicate copy generated by the Electronic Data Interchange System is the valid duty paying document. The Tribunal noted that the duplicate copy was considered valid in previous cases where the original copy was lost, as long as there was no dispute over duty payment and usage in manufacturing. However, the Tribunal emphasized that the triplicate copy of the bill of entry is not a valid duty paying document under Rule 57G. Therefore, the denial of credit amounting to Rs. 22,474 based on the use of the triplicate copy was upheld. The appeal was disposed of accordingly.