1999 (7) TMI 146 - AT - Central Excise

Summary

Issues involved:
Admissibility of Modvat credit under Rule 57A of the Central Excise Rules.

Analysis:

Issue 1: Admissibility of Modvat credit under Rule 57A
The appeal pertains to M/s. Suprabhat Steel Ltd. challenging the disallowance of Modvat credit by the Commissioner, Central Excise, on the grounds that the inputs were not received in the factory under the prescribed duty paying documents. The Appellants received H.R. Coils from SAIL, Bokaro, under duty paying documents and transported them to their factory from the Railway siding. The Commissioner contended that the Modvat credit can only be availed if the inputs are received in the factory under an invoice/challan issued under Rule 52A. The Appellants argued that they received the inputs under duly issued invoices and challans, and the procedure prescribed by the Board for transfer of goods did not apply to their situation. The Tribunal noted that the inputs were cleared by SAIL under duty paying documents and received by the Appellants under the same. The goods were transported to the factory under challans with cross-references of Wagon numbers. The Tribunal held that since the inputs were received under specified duty paying documents, Modvat credit could not be denied to the Appellants. The Tribunal emphasized that the lack of unloading facility at the Railway Station necessitated the transportation of goods to the factory by the manufacturer, which did not invalidate the admissibility of Modvat credit.

This comprehensive analysis of the judgment highlights the key legal issues, arguments presented by the parties, and the Tribunal's reasoning leading to the decision in favor of the Appellants regarding the admissibility of Modvat credit under Rule 57A of the Central Excise Rules.