2002 (1) TMI 199 - AT - Central Excise

Summary

Issues:
1. Availment of Modvat credit after a lapse of more than 6 months from the date of Bills of Entry.
2. Availment of credit on the basis of an "Exchange Control Copy" of Bill of Entry not specified under the Rules.
3. Interpretation of Rule 57G(6) regarding the loss of relevant copy of Bill of Entry and the eligibility of Modvat credit.

Issue 1 - Availment of Modvat credit after a lapse of more than 6 months:
The appeal was filed by the Revenue challenging the availment of Modvat credit amounting to Rs. 10,28,811 after a lapse of more than 6 months from the date of the Bills of Entry, contravening Rule 57G(2) of the Central Excise Rules, 1944. The Asstt. Commissioner adjudicated the case as irregular and directed the reversal of the credit availed. However, the Commissioner (Appeals) set aside the order, leading to the present appeal before CEGAT. The Revenue contended that the credit was allowed contrary to the Proviso under Rule 57G(2).

Issue 2 - Availment of credit on the basis of an "Exchange Control Copy" of Bill of Entry:
The Revenue argued that the credit was availed on the strength of an "Exchange Control Copy" of Bill of Entry, which was not specified under the Rules. They also challenged the reliance placed by the Commissioner (Appeals) on a previous case involving a loss of triplicate copy of Bill of Entry, which was deemed different from the current scenario.

Issue 3 - Interpretation of Rule 57G(6) regarding the loss of relevant copy of Bill of Entry:
CEGAT considered the submissions and found that the appellants had lost or misplaced the relevant copy of the Bill of Entry, an eligible document for availing credit. The appellants had given an intimation/application about the loss within six months from the duty payment date. CEGAT referred to the case of Avis Electronics, emphasizing that credit could be taken within six months but not utilized before the Assistant Collector's order. The tribunal concluded that the credit taken by the appellants pending the decision on their application for the lost document was valid, especially considering the lack of action on their application for over a year.

Therefore, CEGAT held that the Modvat credit availed by the appellants was eligible as per the lower authorities' decision, dismissing the Revenue's appeal. The interpretation of Rule 57G(6) in the context of the loss of the relevant copy of the Bill of Entry was crucial in determining the validity of the credit availed by the appellants.