2006 (1) TMI 41 - AT - Central Excise

Central Excise Modvat credit Credit cannot be denied on the ground that invoices were not in form prescribed under notification no. 33/94-CE (NT) Invoices were issued by a Public Sector Undertaking and would not have issued without payment of duty

Summary

Issues:
Denial of Modvat Credit against invoices issued by a Public Sector Undertaking.

Analysis:
The appeal was filed against an Order-in-Appeal upholding the denial of Modvat Credit to the appellants based on invoices issued by a Public Sector Undertaking, BPCL, Mathura. The issue revolved around the appellants availing Modvat Credit against invoices not compliant with Notification 33/94 (NT) dated 4.7.94. The original adjudicating authority and the appellate authority had both denied the Modvat Credit, leading to the current appeal.

The Tribunal considered the submissions made by both sides and focused on the denial of Modvat Credit on two invoices issued by BPCL, Mathura. The show cause notice alleged that the Modvat Credit was taken on invoices not in the prescribed form as per Notification No. 33/94. During the relevant period, there was confusion regarding the required contents in the invoices for claiming Modvat Credit. The Tribunal noted that as a Public Sector Undertaking, BPCL could have easily rectified any shortcomings in the invoices, and the authorities could have verified and granted the Modvat Credit to the appellants. The purpose of Notification No. 33/94 was to ensure the authenticity of duty paying particulars mentioned in the invoices.

After reviewing the facts and circumstances, the Tribunal concluded that the Order-in-Appeal should be set aside. The Tribunal found that the denial of Modvat Credit based on the invoices from a Public Sector Undertaking was unwarranted. Consequently, the Tribunal allowed the appeal and provided for any consequential relief. The operative part of the decision was pronounced in open court.