2004 (2) TMI 167 - AT - Central Excise

Summary

Issues: Modvat credit on imported goods

Analysis:
The appeal in question is against the Order-in-Appeal No. 193/2001 (H-I) C.E., dated 13-11-2001 passed by the Commissioner of Central Excise (Appeals), Hyderabad. The issue revolves around Modvat credit on imported goods utilized by the appellants, who are manufacturers of Metal Containers. They availed credit of duty paid on inputs under Rule 57A of the Central Excise Rules. A Show Cause Notice was issued alleging irregular availing of credit amounting to Rs. 94,345. The Assistant Commissioner confirmed the demand, citing that the invoices were not pre-authenticated by the proper officer, rendering them invalid for Modvat credit. Additionally, the Department argued that the receipt entry of the Bill of Entry was made after the prescribed time limit of six months as per Rule 57G(6) of the Central Excise Rules.

The appellants contended that the denial of Modvat credit was not in accordance with the law. They referenced a Tribunal decision in the case of Hamco Mining and Smelting Co. Ltd. v. Commissioner of Central Excise, Surat, highlighting the importer's lack of control over customs processes and the notionally reckoned date of issue for a Bill of Entry. After hearing arguments from both sides, the Tribunal noted that the importer had registered after the importation of goods and subsequently issued invoices. Given the unique circumstances and the absence of a specific date of issue for a Bill of Entry, the Tribunal found no fault in availing credit based on the post-registration invoices. Consequently, the appeal was allowed, granting relief to the appellants regarding the Modvat credit on the imported goods.