2000 (10) TMI 159 - AT - Central Excise

Summary

Issues:
1. Non-compliance with Stay Order by the appellants.
2. Denial of Modvat credit due to invoices lacking pre-printed serial numbers.
3. Applicability and binding nature of Board's Circular on Revenue Authorities.

Analysis:
1. The appeal was dismissed by the Commissioner (Appeals) due to non-compliance with the Stay Order requiring the deposit of dues without granting a personal hearing to the appellants. The appellants argued that the Stay Order was passed without giving them an opportunity for a personal hearing. The Tribunal noted that the appellate authority should have heard the appellants before deciding on the Stay Petition or the Appeal. The Tribunal found no justification for remanding the matter back to the Commissioner (Appeals) as the issue was covered by the Board's Circular, ultimately setting aside the impugned order and allowing the appeal.

2. The Revenue sought to deny Modvat credit to the appellants due to invoices lacking pre-printed serial numbers as required by the Central Excise Rules. However, the Board's Circular clarified that the absence of pre-printed serial numbers on computer-generated invoices does not warrant denial of Modvat credit. The Circular emphasized that procedural lapses due to differences in procedures among Commissionerates should not lead to denial of credit. The Tribunal held that the dispute was clearly covered in favor of the appellants by the Circular, stating that the instructions issued by the Board are binding on Revenue Authorities.

3. The Tribunal emphasized the binding nature of the Board's Circular on Revenue Authorities and highlighted that the dispute in the appeal was conclusively covered by the Circular. The Tribunal noted that under normal circumstances, the matter could have been remitted back to the Commissioner (Appeals) for a decision on merits after dispensation. However, due to the clear coverage of the issue by the Circular, the Tribunal decided to allow the appeal and provide consequential reliefs to the appellants, thereby disposing of the stay petition as well.