2004 (8) TMI 218 - AT - Central Excise

Summary

Issues:
- Denial of Modvat credit to the appellant
- Requirement of producing original duty paying documents
- Compliance with Rule 57H of Central Excise Rules
- Interpretation of remand order directions
- Substantiation of Modvat credit claim

Analysis:

The appellant, engaged in manufacturing steel tubes, appealed against the denial of Modvat credit after duty exemption on steel tubes was withdrawn. The appellant sought credit for duty paid inputs used in the steel tubes, which were in stock when they became dutiable. The initial denial was based on lack of prior permission for credit. The Tribunal remanded the case for the appellant to substantiate their claim under Rule 57H. The appellant contended they had provided details and original duty paying documents, GP-1s, which were not disputed by the Revenue. The Revenue, however, insisted on the production of original documents. The Tribunal, bound by the remand order, assessed whether the appellant had proven their claim for Modvat credit on inputs used in the final product. It noted that the inputs were regularly duty-paid intermediate products, not disputed by the Revenue. The appellant had submitted GP-1s and other documents to support their claim. As the Revenue did not contest the receipt of these documents and the appellant's compliance with duty payments, the Tribunal found the denial of credit unsustainable. The impugned order was set aside, and the appeal was allowed, entitling the appellant to consequential relief as per the law.