1996 (1) TMI 255 - AT - Central Excise

Summary

Issues: Availment of Modvat credit for imported materials based on endorsed Bills of Entry without the prescribed certificate from the Superintendent as required by Rule 57G of the Central Excise Rules.

Analysis:
1. The appeal and stay application were filed against an Order-in-Appeal passed by the Commissioner of Central Excise (Appeals) relating to the availment of Modvat credit for imported materials based on endorsed Bills of Entry. The issue revolved around the endorsement on the Bills of Entry by the importers, indicating that the goods were sent to the appellants without claiming Modvat benefit against the original triplicate copies of the Bills of Entry.

2. The jurisdictional Superintendent certified that the goods covered by the Bills of Entry were not received by the importers, and no Modvat credit was taken by them for these goods. The appellants argued that the materials were loaned to the importers earlier and were now returned, establishing a link between the imported goods and their utilization in the factory. The department contended that a certificate from the Superintendent, not an endorsement, was the legal requirement under Rule 57G, and without it, other evidence should not be considered.

3. The Tribunal found that the documents indicated the transfer of imported materials to the appellants, suggesting that the goods, which had incurred duty, were utilized in the appellants' factory. The issue of whether it was a loan return or not required further evidence. The Tribunal emphasized the need for additional documents regarding the movement of goods between the parties on a loan basis to establish a complete nexus. The lack of a prescribed certificate from the Superintendent should not overshadow the preponderance of evidence presented by the appellants.

4. Consequently, the Tribunal set aside the lower authorities' orders and remanded the case to the Assistant Commissioner for a detailed examination of all available evidence. The appellants were directed to produce all relevant documents before the Assistant Commissioner for a determination on the eligibility of Modvat credit for the imported materials transferred to them. The appeal was allowed by way of remand, rendering the stay application moot and disposed of.