2006 (12) TMI 207 - AT - Central Excise

Summary

Issues involved: Appeal regarding deemed credit under Notification No. 58/97-C.E., challenge to decision of Hon'ble Punjab & Haryana High Court in the case of Vikas Pipe, and denial of credit based on appropriate discharge of duty on invoices.

Deemed credit under Notification No. 58/97-C.E.: The Revenue appealed against the allowance of deemed credit to the respondents under Notification No. 58/97-C.E. The contention was that the respondents availed deemed credit based on invoices from M/s. Prince Agro & Allied Industries declaring goods cleared under Rule 96-ZP. The Commissioner (Appeals) allowed the deemed credit citing the case of Vikas Pipe v. CCE, Chandigarh. The Hon'ble High Court ruled that the assessee is entitled to benefit from Notification No. 58/97-C.E. for deemed Modvat credit regardless of whether duty was paid by the manufacturer. The Revenue argued that the decision in the case of Vikas Pipe is under challenge in the Hon'ble Supreme Court.

Challenge to decision of Hon'ble Punjab & Haryana High Court: The respondents referred to the case of CCE v. Elasto Plastic Bombay where the Punjab & Haryana High Court dismissed the Revenue's appeal on 28-8-2006 regarding deemed credit taken without a declaration on appropriate duty discharge in the invoices.

Denial of credit based on appropriate discharge of duty: In the present case, the respondents claimed credit based on invoices indicating goods cleared under Rule 96-ZP, and argued that credit cannot be denied due to the manufacturer's duty payment status. They contended that any dispute on duty payment should be addressed with the manufacturer, and the Revenue can take action against them. Consequently, the appeal was dismissed as there was no merit found in denying the credit under these circumstances.