1997 (7) TMI 371 - AT - Central Excise

Summary

Issues: Modvat credit eligibility based on documentation.

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the case involved the appellants, engaged in manufacturing wristwatches, availing Modvat credit for imported materials. The Department alleged discrepancies in the documentation for Modvat credit claimed by the appellants. The dispute revolved around the requirement of specific documents for claiming Modvat credit as per Notification No. 6/95-C.E. The lower authorities upheld the Department's view, leading to the appeal before the Tribunal.

The appellants argued that the notification cited by the Department was for a subsequent period and not applicable to the period in question. They admitted their inability to produce original documents for some consignments but emphasized having the necessary documentation for the disputed 7th consignment. The appellants contended that the quadruplicate Bill of Entry, considered a valid document for Modvat credit, was available to them. They highlighted the exemption of basic customs duty based on the receipt and utilization of goods in manufacturing, which was undisputed in their case.

After considering the submissions, the Tribunal found that the notification referred to by the Department was not applicable to the relevant period. They noted that the quadruplicate Bill of Entry, being a valid document for claiming Modvat credit, should suffice in this case. Additionally, the Tribunal acknowledged the exemption of basic customs duty based on the proper receipt and utilization of goods by the appellants. Consequently, the Tribunal held that the Modvat credit amounting to Rs. 5,56,770/- was admissible to the appellants. The appeal was allowed in favor of the appellants concerning the disputed amount, modifying the impugned order accordingly.