1996 (7) TMI 271 - AT - Central Excise

Summary

Issues:
- Disallowance of Modvat credit due to lack of original duty paying documents
- Interpretation of Rule 57G and its applicability to Modvat credit claims

Analysis:
1. The appellants challenged the order of the Collector (Appeals) disallowing Modvat credit of Rs. 20,793 due to the absence of original duty paying documents. The Central Excise officers observed that the appellants availed credit based on a photocopy of a Gate Pass. A show cause notice was issued, alleging ineligibility for credit under the Modvat scheme without original documents.

2. The appellants contended that they requested the supplier for proof to claim Modvat credit, and upon receiving an attested photocopy of the Gate Pass, they availed the credit. The Asstt. Collector and Collector (Appeals) disallowed the credit under Rule 57-I. The appellants cited the case of SBS Organics Pvt. Ltd., arguing against a mechanical denial of credit for defective documentation.

3. The DR argued that Rule 57G(4) mandates submission of original duty payment evidence monthly. The DR highlighted the amendment to the rule post-1990, emphasizing the requirement for original documents. The DR asserted that the SBS Organics case was inapplicable due to the rule change.

4. The Judge noted the amendment to Rule 57G requiring original documents from 1-2-1990. As the appellants relied on a photocopy of the Gate Pass without the original, they were deemed ineligible for Modvat credit. The Judge distinguished the SBS Organics case, stating it was not relevant post-amendment. Consequently, the impugned order disallowing Modvat credit was upheld, and the appeal was rejected.