2005 (3) TMI 329 - AT - Central Excise

Summary

Issues: Denial of deemed Modvat credit under Notification No. 58/97-C.E. (N.T.) based on invoices lacking proper declaration.

In these two appeals challenging a common order-in-appeal, the core issue revolves around the denial of deemed Modvat credit to the appellants under Notification No. 58/97-C.E. (N.T.) due to deficiencies in the declarations on the invoices obtained from suppliers.

Upon hearing both sides and examining the record, the Tribunal found that the declaration provided by one supplier, M/s. Prince Agro & Allied Indus., stating the goods were cleared in terms of Rue 96-ZP, met the requirements of the notification. This interpretation was supported by a previous Tribunal decision in the case of Shree Ambica Steel Indus. v. CCE, Chandigarh, which followed a judgment from the Punjab & Haryana High Court. Consequently, the Tribunal set aside the denial of deemed Modvat credit based on invoices from this supplier.

However, a different conclusion was reached regarding invoices from another supplier, M/s. Devta Steel Rolling Mills, which carried the declaration "Duty liability to be discharged." The Tribunal rejected the argument that this declaration sufficed under the notification, noting that the duty was not discharged at the time of clearance but at a later date. Despite certificates from the Superintendent regarding duty discharge for a specific period, the Tribunal emphasized the lack of evidence proving duty discharge at the time of invoice issuance. Therefore, the denial of deemed Modvat credit based on invoices from this supplier was upheld.

Consequently, the Tribunal partially upheld and partially set aside the impugned order, reducing the penalty proportionately to Rs. 7,000 out of the total Rs. 15,000 imposed. The appeals were disposed of accordingly.