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2008 (7) TMI 64 - HC - Central ExciseCredit denied alleging that the same was taken against invalid documents credit denied on the ground that prior to 1.4.94 invoice issued u/r 52A of CER was not a prescribed document - in terms of the Notification 15/94 dated 3.30.94 read with Circular 76/76/94, the invoice in question was a valid document the invoice/documents issued by a manufacturer from his depot has been recognized as valid documents credit can t be denied on ground that Notification was made effective w.e.f. 1.4.94
Issues:
1. Admissibility of Modvat credit under Central Excise Act, 1944. 2. Validity of documents for availing Modvat credit. 3. Interpretation of Notification No.15/94 CE (NT) and Circular No.76/76/94-CX. 4. Appeal against the order of Commissioner (Appeals) regarding Modvat credit. Analysis: Issue 1: Admissibility of Modvat credit under Central Excise Act, 1944 The appeal was filed by the Commissioner of Central Excise, Delhi-III under Section 35G of the Central Excise Act, 1944 against the order passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi. The appellant, M/s Northern Minerals Limited, was engaged in manufacturing insecticides, pesticides, fungicides, and herbicides under specific chapters of the Central Excise Tariff Act, 1985, and availed Modvat facility under Rule 57A of the Central Excise Rules, 1944. Issue 2: Validity of documents for availing Modvat credit The adjudicating authority disallowed Modvat credit of Rs.10,64,444/- alleging it was taken against invalid documents. The Commissioner (Appeals) Central Excise, Gurgaon, held that a portion of the credit was admissible while another portion was not. The appellant contested the denial of Modvat credit in respect of certain invoices, arguing their validity under the Rules. The Commissioner (Appeals) dismissed the appeal, leading to further proceedings before the Tribunal. Issue 3: Interpretation of Notification No.15/94 CE (NT) and Circular No.76/76/94-CX The Tribunal remanded the matter to the Commissioner of Central Excise (Appeals) who allowed the appeal of the assessee based on the provisions of Notification No.15/94 CE (NT) and Circular No.76/76/94-CX. The Tribunal, in a subsequent appeal by the revenue, confirmed the order of the Commissioner (Appeals), leading to the present appeal before the High Court. Issue 4: Appeal against the order of Commissioner (Appeals) regarding Modvat credit The High Court considered the substantial question of law raised, focusing on the admissibility of Cenvat Credit on invoices issued by a manufacturer from their warehouse on 31.03.1994 under the relevant notifications and circulars. The Court examined the contentions raised by the appellant's counsel and found no merit in the arguments challenging the validity of the documents for claiming Modvat credit. The Court upheld the Tribunal's decision, concluding that no question of law arose for consideration and dismissed the appeal. In conclusion, the High Court upheld the Tribunal's decision, emphasizing the validity of the documents for availing Modvat credit under the relevant provisions of the Central Excise Act, 1944 and associated notifications and circulars. The Court's detailed analysis clarified the admissibility of the credit based on the genuineness of the documents and the procedural nature of the relevant notifications, ultimately dismissing the appeal.
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