2004 (5) TMI 194 - AT - Central Excise

Summary

Issues: Revenue appeal against credit taken after six months from Bill of Entry issuance

Analysis:
The case involved an appeal by the Revenue against the order allowing credit in respect of a Bill of Entry after six months, as permitted by the Commissioner (Appeals). The respondents imported inputs via a Bill of Entry dated 6-2-98, with goods received in the factory between 20-4-98 to 29-7-98. Despite the triplicate copy of the Bill of Entry being misplaced, the respondents sought permission to take credit based on the quadruplicate copy. The credit was eventually availed on 11-12-98, leading to its denial by the Revenue due to being taken after the stipulated six-month period from the duty paying document's issuance.

The Revenue contended that the credit was not permissible as it was taken beyond the six-month limit from the duty paying document's issuance. However, the appellant referenced the decision of the Larger Bench in the case of Kusum Ingots to support their position. It was noted that the goods were received in the factory without dispute, and the appellant had requested permission to take credit based on alternative copies of the Bill of Entry due to the triplicate copy being lost. Despite the pending request with the Revenue, no action was taken. Subsequently, upon finding the triplicate copy, the appellant availed the credit. The appellant's argument was supported by a Board's Circular clarifying that the six-month limit does not apply when seeking permission to take credit based on non-modvatable documents.

In conclusion, the Tribunal found no merit in the Revenue's appeal, dismissing it based on the circumstances presented. The appellant's proactive efforts to seek permission, coupled with the delayed response from the Revenue and the subsequent credit availed upon finding the necessary document, were deemed valid reasons for allowing the credit beyond the six-month period. The decision was supported by legal precedents and relevant circulars, reinforcing the dismissal of the Revenue's appeal.