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Issues:
- Appeal against impugned order of Collector of Central Excise & Customs, Ahmedabad regarding Modvat credit under Rule 57A. - Validity of gate pass endorsement for claiming Modvat credit. - Application of precedent decision in Usha Associates v. Collector of Central Excise & Customs, Vadodara. Analysis: 1. The appellant appealed against the Collector of Central Excise & Customs, Ahmedabad's order concerning the admissibility of Modvat credit under Rule 57A. The appellant, engaged in manufacturing Body Building for Water Tanker and auto rickshaws, received goods under gate passes not endorsed in their name, leading to a dispute over the admissibility of Modvat credit amounting to Rs. 90,527.20. The Assistant Collector confirmed the Show Cause Notice, which was upheld by the Collector (Appeals), prompting this appeal. 2. The appellant's counsel argued that despite the initial lack of endorsement on gate passes, the goods were received and utilized in the final product's manufacture, justifying the Modvat credit claim. Citing a precedent decision in Usha Associates case, it was contended that non-endorsement is a rectifiable issue, and the credit cannot be denied based on this technicality. In contrast, the JDR asserted that the endorsed gate pass is a valid duty-paying document for claiming credit, highlighting the uniqueness of the earlier decision as a Single Member ruling under special circumstances. 3. Upon reviewing the appeal memorandum, lower authorities' orders, and relevant documents, the Tribunal observed that the appellant had rectified the endorsement issue before the Show Cause Notice response. Referring to the precedent decision, the Tribunal held that the mere absence of endorsement should not hinder Modvat credit entitlement, especially when the goods were transferred to the appellant before the notice. Consequently, the Tribunal allowed the appeal, setting aside the impugned order and ruling in favor of the appellant.
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