1996 (7) TMI 322 - AT - Central Excise

Summary

Issues:
Eligibility of the invoice for Modvat credit.

Analysis:
The case involved the eligibility of an invoice for Modvat credit. The appellants were manufacturing galvanized sheets using input C.R. Coils transferred by M/s. Sipta Coated Steel Ltd. to their depot, and then to the appellants via M.B. Enterprises. The Assistant Collector denied credit as it was taken after the deadline mentioned in Notification No. 16/94-C.E. The appellants argued that credit was available under Notifications No. 15/94-C.E. and 21/94-C.E. The Advocate highlighted the liberalization of the Modvat Scheme by the government and claimed benefit under various notifications. The Revenue contended that the benefit under Notification No. 16/94-C.E. was correctly denied.

The Tribunal considered both parties' submissions. It noted that credit had to be taken before 30-6-1994 under Notification No. 16/94, which was not met in this case. However, it found that the invoice dated 16-5-1994 satisfied the conditions of Notification No. 15/94-C.E. and thus, the credit taken under this invoice was correct. The Tribunal also acknowledged the appellant's claim that they had submitted the invoice along with the gate pass, which was not properly recorded by the authorities. Citing precedents, the Tribunal emphasized that substantial benefit should not be denied due to procedural lapses.

As a result, the appeal succeeded, and both lower orders were set aside. The matter was remanded to the Assistant Collector to permit the Modvat credit based on the invoice. Since the main appeal was disposed of, the stay application became irrelevant.