1997 (8) TMI 218 - AT - Central Excise

Summary

Issues:
1. Disallowance of credit for non-production of duplicate copy of invoice.
2. Denial of credit for incomplete documentation on specific invoices.
3. Eligibility of personal computer and vacuum cleaner for Modvat credit.
4. Dispute over denial of credit for electric transformer.

Issue 1: Disallowance of credit for non-production of duplicate copy of invoice
The appeal arose from an Order-in-Original modifying a demand raised in a show cause notice. The Commissioner (Appeals) held a portion of the demand inadmissible due to disallowed credit under Rule 57U of Central Excise Rules, 1944. The case hinged on the non-production of a duplicate copy of an invoice involving a credit of Rs. 839. The Chartered Accountant argued that they had submitted a carbon copy of the invoice, with only the "duplicate for transporter" not explicitly marked. The Tribunal agreed that this technicality warranted a remand for further consideration by the lower authorities.

Issue 2: Denial of credit for incomplete documentation on specific invoices
The Commissioner denied Modvat credit for certain invoices due to missing details like product description, quantity, and order numbers. The Chartered Accountant contended that all necessary details were provided, with the goods' description handwritten by the manufacturer. He argued that the Commissioner's assertion of missing documentation was incorrect, as they had submitted all relevant invoices and challans. The Tribunal found merit in the argument and remanded the matter for a fresh assessment to grant the Modvat credit.

Issue 3: Eligibility of personal computer and vacuum cleaner for Modvat credit
The Chartered Accountant sought Modvat credit for a personal computer in the Quality Control Room and a vacuum cleaner, citing precedents where similar items were granted credit. He argued that the computer was essential for product quality analysis, while the vacuum cleaner was integral to the manufacturing process. The Tribunal acknowledged the relevance of these items and remanded the case for further evaluation to determine their eligibility for Modvat credit.

Issue 4: Dispute over denial of credit for electric transformer
The Chartered Accountant contested the denial of credit for an electric transformer, referring to past judgments supporting its eligibility for Modvat credit. The Tribunal noted conflicting views on transformers but ultimately upheld their eligibility based on established precedents. The Tribunal rejected the argument for a reference to a Larger Bench and ruled in favor of granting Modvat credit for the transformer. The case was remanded for further consideration on certain aspects, emphasizing the need for a comprehensive assessment based on legal precedents and evidence presented.