1997 (5) TMI 138 - AT - Central Excise

Summary

Issues:
1. Whether Modvat credit of duty can be taken on the strength of an endorsed Bill of Entry.

Analysis:
The case involved the question of whether Modvat credit of duty could be availed based on an endorsed Bill of Entry. The appellants, engaged in manufacturing LDPE films and packages, had purchased imported raw materials using endorsed Bills of Entry and claimed Modvat credit for the duty paid on these materials. The Deputy Collector initially denied the credit, which was upheld by the Collector (Appeals), leading to the appeal before the Tribunal.

The appellant's advocate argued that previous Tribunal decisions, such as Filaments India Ltd. and Alcobex Metal Ltd., supported the practice of taking Modvat credit based on endorsed Bills of Entry. He contended that these precedents applied to the current case as well, requesting the appeal to be allowed with consequential relief.

On the other hand, the JDR representing the respondent reiterated the lower authority's findings, opposing the appellant's claim for Modvat credit based on endorsed Bills of Entry.

After considering both parties' submissions, the Tribunal analyzed whether the duty paying character of a Bill of Entry changes upon endorsement. It was noted that Rule 57G specified the documents for availing Modvat credit, including the Bill of Entry. The Tribunal found that endorsing the Bill of Entry did not alter its duty-paying nature, as the duty was paid and not refunded or unpaid. Referring to previous Tribunal decisions supporting the allowance of Modvat credit on endorsed Bills of Entry, the Tribunal ruled in favor of the appellant, allowing the appeal and granting any consequential relief as per the law.

In conclusion, the Tribunal held that Modvat credit could indeed be claimed based on an endorsed Bill of Entry, emphasizing the legality of such practice under Rule 57G and supported by previous Tribunal decisions unless overturned by the Supreme Court. The appeal was allowed, and the appellant was entitled to consequential relief as per the law.