1994 (3) TMI 174 - AT - Central Excise

Summary

Issues:
Appeal against the order of Collector of Central Excise regarding Modvat credit availability based on documents issued by consignment agent.

Detailed Analysis:
The appellant, a manufacturer of C.R. Strips, claimed Modvat credit on inputs purchased from M/s. Tata Iron and Steel Co. Ltd. (TISCO) through their consignment agent, M/s. Salig Ram Shiv Prasad. Both inputs and final products were covered under the Modvat Scheme. The issue arose when the Department sought to deny the Modvat credit, arguing that the documents issued by the consignment agent were not acceptable as duty paying documents. The appellant contended that the consignment agent was merely a custodian of duty-paid goods of TISCO in the stockyard, and the certificates issued by them met the requirements of relevant rules and trade notices (Para 2-6).

The appellant referred to various Tribunal orders and presented an agreement between TISCO and the consignment agent to support their contention that the consignment agent operated under TISCO's supervision and control. They also provided copies of Challans bearing duty payment certificates and TISCO officer's details, emphasizing that there was no basis for the Department to deny them Modvat credit (Para 7-8).

The appellant highlighted that in similar cases, the same Collector (Appeals) had allowed appeals based on a Trade Notice issued by another Collectorate, indicating inconsistency in decisions based on different Trade Notices. On the other hand, the Department argued that original duty paying documents were required as per rules, citing precedents to support their stance (Para 9-11).

The Tribunal observed the strong force in the appellant's submissions, noting that the consignment agent operated under TISCO's overall supervision and control as per the agreement. The Tribunal found the documents provided by the appellant, including Challans and certificates, sufficient to prove duty payment, especially considering that similar documents from TISCO were acceptable to the Department. The Tribunal set aside the impugned order and accepted the appeal (Para 12-15).