2002 (5) TMI 123 - AT - Central Excise

Summary

Issues:
1. Disallowance of Modvat credit for two invoices by authorities.
2. Interpretation of 'loss in transit' for Modvat credit.
3. Validity of taking Modvat credit based on certified xerox copy.
4. Requirement of prior permission for availing Modvat credit.

Analysis:
1. The appellant company took Modvat credit for two invoices, which authorities disallowed. For the first invoice, the appellant claimed the duplicate was lost, but authorities denied credit as it was not lost in transit. Citing a precedent, the appellant argued loss during the journey should qualify. The Tribunal agreed, allowing credit for the first invoice.

2. Regarding the second invoice, the appellant stated the driver lost both original and duplicate copies during transit. They obtained a certified xerox copy from the supplier, asserting no chance of misutilization. The Revenue opposed, citing lack of provision for Modvat credit based on a certified xerox copy. The Tribunal found the driver's loss plausible and allowed credit for the second invoice.

3. The Revenue contended that prior permission was necessary for availing Modvat credit. However, the Tribunal did not find this a valid ground for disallowance, focusing on the loss of documents during transit and the subsequent certification of the xerox copy by the supplier.

4. After considering arguments, the Tribunal held that Modvat credit was admissible for both invoices. For the first invoice, loss during transit was deemed valid based on precedent. For the second invoice, the loss of both original and duplicate copies was accepted, and credit was allowed based on the certified xerox copy. The impugned order was set aside, and the appeal was allowed with consequential reliefs for the appellants.