2001 (11) TMI 142 - AT - Central Excise

Summary

Issues:
Disallowed Modvat credit based on photocopy of triplicate copy of bill of entry under Rule 57G.

Analysis:
The appeal was filed against the Order-in-Appeal confirming the Order-in-Original disallowing Modvat credit of Rs. 26,36,683.60 based on the photocopy of the triplicate copy of the bill of entry under Rule 57G. The appellants had availed Modvat credit but were found to have wrongly claimed a portion of it. The Deputy Commissioner issued a show cause notice for recovery of the amount and imposed a penalty. The appellants argued that the credit was correctly taken as the triplicate copy was lost in transit, but the authorities did not accept this explanation. The Commissioner (Appeals) upheld the decision.

The appellant's counsel contended that Modvat credit on the photocopy of the triplicate copy of the bill of entry was legally permissible due to the loss of the triplicate copy in transit. However, the authorities argued that the credit could only be allowed if the loss was proven to the satisfaction of the Assistant Collector. The Larger Bench decision in another case supported this position. The Modvat credit could only be taken based on specific documents as per the rules.

The Tribunal found that there was no evidence to suggest that the appellants had informed the Assistant Collector about the loss of the triplicate copy before availing the Modvat credit. The appellants' letter regarding the loss was sent after availing the credit, and no supporting documents were provided. The Tribunal emphasized the mandatory requirement to prove the loss of specific documents before claiming Modvat credit. The decisions cited by the appellant's counsel were deemed irrelevant in this context.

The Tribunal rejected the argument that the authorities had exceeded the scope of the show cause notice. The notice clearly indicated that the documents used for claiming Modvat credit were not admissible under the relevant rules. The photocopy of the triplicate copy of the bill of entry did not meet the requirements for claiming Modvat credit. Therefore, the decision to disallow the credit was upheld, and the appeal was dismissed.