2005 (7) TMI 227 - AT - Central Excise

Summary

Issues:
1. Demand of duty raised against the appellants based on alleged irregularities in duty payment process.
2. Validity of duty payment based on endorsement by importer or separate certificate.
3. Compliance with procedural requirements for availing duty credit.
4. Interpretation of relevant circulars and public notices in duty payment process.

Analysis:
1. The appellants were engaged in manufacturing lubricating oil for M/s. Caltex (I) Ltd., who imported raw materials cleared directly to the appellant's factory. A demand of duty amounting to Rs. 3,83,460 was raised against the appellants due to alleged irregularities in duty payment process, specifically related to the endorsement on bills of entry and submission of duty paying documents for verification.

2. The dispute in the appeal centered around the manner of endorsement on duty paying documents, with the importer providing a separate certificate instead of endorsing the bills of entry directly. The presiding member noted that the purpose of the endorsement is to confirm the delivery of goods, and whether it is done directly on the bill of entry or through a separate certificate should not impact the validity of duty payment.

3. The Deputy Commissioner had imposed a penalty on the appellants for non-compliance with procedural requirements, including delayed submission of duty paying documents for verification. However, the presiding member highlighted that the filing of duty paying documents immediately after import is essential to confirm receipt of goods by the assessee, and noted that the authorities should follow relevant public notices facilitating smooth legal procedures.

4. Referring to a Tribunal decision in a similar case, the presiding member emphasized the acceptance of photocopies of bills of entry along with certificates from importers as proper duty paying documents for availing Modvat credit. In light of these considerations, the impugned orders were set aside, and the appeal was allowed in favor of the appellants, granting them consequential relief.

This judgment underscores the importance of adherence to procedural requirements in duty payment processes and highlights the significance of following relevant circulars and public notices to ensure smooth functioning of legal procedures in matters concerning duty payment and credit availing.