1996 (2) TMI 229 - AT - Central Excise

Summary

Issues:
- Allowance of modvat credit based on a photocopy of gate pass.
- Validity of photostat copy as a genuine duty paying document.

Analysis:
The case involved a dispute regarding the allowance of modvat credit based on a photocopy of a gate pass. The Collector (Appeals) had allowed the modvat credit on cement for the respondents, which was endorsed by the original supplier and subsequently endorsed to different manufacturing units. The Department contended that modvat credit on an endorsed photocopy of a gate pass should not be permitted. The issue revolved around whether a photostat copy could be accepted as a genuine duty paying document.

The Tribunal noted that the inputs were received, and there was no dispute regarding the duty payment on the goods. The main contention was that the document in question was a photostat copy, not an original. However, the Tribunal referred to previous decisions where endorsements on gate passes were considered valid for modvat credit. The Tribunal also cited a previous case where the authenticity of a photostat copy was upheld, emphasizing that the department did not dispute the reliability of the document. Additionally, the Tribunal referenced a Bombay High Court decision allowing duplicate copies of excise documents for modvat credit, indicating a liberal view towards accepting such documents.

Considering the precedents and the fact that the department did not challenge the authenticity of the photostat copy in question, the Tribunal upheld the Collector (Appeals) decision to allow modvat credit based on the endorsed photocopy of the gate pass. The Tribunal found no legal infirmity in the decision and rejected the appeal, affirming the admissibility of modvat credit in this case based on the photostat copy of the gate pass.