1997 (1) TMI 236 - AT - Central Excise

Summary

Issues:
- Eligibility of Modvat credit for capital goods
- Requirement of duplicate copy of invoice for Modvat credit

Eligibility of Modvat credit for capital goods:
The appeal in this case revolves around the denial of Modvat credit under Rule 57Q of the Central Excise Rules, 1944 for capital goods. The lower authorities contended that the appellant was not entitled to utilize Modvat credit for capital goods and also insisted on the production of a duplicate copy of the invoice. However, the Commissioner, in the impugned order, ruled in favor of the appellant, stating that Modvat credit cannot be denied for capital goods. The appellant succeeded on the merits, and the Revenue did not file any appeal against this decision. The only ground for the appeal was the denial of Modvat credit based on the original copy of the invoice, as the Commissioner held that such provisions were not available for capital goods at the relevant time. Consequently, the appeal was dismissed solely on this ground.

Requirement of duplicate copy of invoice for Modvat credit:
During the appeal hearing, the Advocate for the appellant highlighted specific provisions of the law, including Rule 57G(2A) and Rule 57T sub-rule (3), which allow for the acceptance of the original invoice in cases where the duplicate copy is lost in transit. The Advocate emphasized that Rule 57T does not mandate the production of a duplicate invoice but requires the goods to be received under the cover of an invoice or a Bill of Entry. The Commissioner's failure to consider these provisions led to an oversight, as the original invoice provided by the appellant sufficed as evidence for the loss of the duplicate copy. The Tribunal concluded that the impugned order was flawed and set it aside, directing the original authorities to grant Modvat credit after verifying the documents in line with the observations made during the appeal.

In conclusion, the Tribunal allowed the appeal, emphasizing that the provisions of Rule 57G and Rule 57T did not necessitate the production of a duplicate invoice for claiming Modvat credit on capital goods. The decision underscored the importance of adhering to the statutory requirements and ensuring that the relevant documents are provided to support the claim for credit.