1994 (6) TMI 61 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat credit on C.R. Sheets.
2. Admissibility of deemed Modvat credit.
3. Production of necessary documents.
4. Completeness of description of goods in bills.
5. Legal interpretation of Rule 57G(2) of the Central Excise Rules, 1944.

Analysis:

1. The appellant, a manufacturer of electrical goods, appealed against the denial of Modvat credit on C.R. Sheets by the Collector (Appeals). The Assistant Collector had initially refused the credit, stating that the party did not provide complete descriptions of the goods and failed to produce supporting documentary evidence.

2. The appellant claimed deemed Modvat credit under Rule 57G(2) of the Central Excise Rules, 1944, arguing that the Central Government's order allowed for such credit on C.R. Sheets. The appellant contended that they had availed the deemed credit in accordance with the order and that the demand for the credit amount was not sustainable.

3. The appellant's advocate argued that the Collector (Appeals) erred in finding that the appellant did not produce documents evidencing the payment of duty, as deemed credit is admissible when actual duty-paying documents are unavailable. The advocate maintained that the appellant had submitted necessary documents, including the RG 23A Part I and supporting vouchers, which clearly indicated the use of C.R. Sheets as inputs.

4. The ld. JDR for the respondent reiterated the lower authorities' findings, emphasizing that for deemed credit to be allowed, the goods must be recognizable as duty paid. Since the goods in question did not meet this criterion, the appellant was not entitled to deemed Modvat credit.

5. After considering the submissions, the judge found that the denial of Modvat credit on C.R. Sheets was unfounded. The judge observed that the appellant had indeed submitted the required documents, including the RG 23A Part I and vouchers, which clearly indicated the use of C.R. Sheets. Therefore, the judge held that deemed Modvat credit on C.R. Sheets amounting to Rs. 13,385.27 was admissible to the appellant, allowing the appeal partially.

6. The judge upheld the impugned order with the modification regarding the admissibility of deemed Modvat credit on C.R. Sheets. The appeal was disposed of accordingly, with the appellant succeeding in part of their claim.