2000 (5) TMI 410 - AT - Central Excise

Summary

Issues: Disallowance of Modvat credit; Compliance with Notification No. 33/94-CE (NT); Adjudication findings; Appeal against Additional Commissioner's order; Commissioner (Appeals) decision; Duty-paid character of inputs; Assessable value requirement; Admissibility of Modvat credit based on invoices; Compliance with Notification particulars.

Disallowance of Modvat credit: The jurisdictional Additional Commissioner of Central Excise disallowed Modvat credit of Rs. 1,65,943.50 taken by the appellants due to incomplete particulars in dealer's invoices, as required by Notification No. 33/94-CE (NT). The Additional Commissioner found that necessary particulars were missing, leading to the disallowance.

Adjudication Findings: The Additional Commissioner observed that even though the party provided additional evidence with full invoice details, the assessable value of goods was not given for 5 out of 6 invoices. Despite acknowledging the detailed evidence, the demand was confirmed based on the missing assessable values.

Appeal and Commissioner (Appeals) Decision: The party appealed to the Commissioner of Central Excise (Appeals) against the Additional Commissioner's order. The Commissioner (Appeals) upheld the disallowance, emphasizing discrepancies in duty amounts on invoices and certificates. It was deemed crucial for the appellants to establish the duty-paid nature of inputs as per a specific Board circular.

Assessable Value Requirement: The finding that assessable value was not provided was challenged in the appeal. The Tribunal noted that this requirement was not mandatory for availing Modvat credit under the Notification. The lack of specific allegations in the show-cause notice regarding assessable value further weakened this argument.

Admissibility of Modvat Credit: While the appeal was partly allowed, the Tribunal upheld the disallowance of Modvat credit related to an invoice from M/s. Reliable Electrodes due to incomplete particulars. The credit based on this specific invoice was deemed inadmissible under Notification No. 33/94.

Conclusion: The Tribunal set aside the order concerning Modvat credit from invoices issued by M/s. CITCO, partially allowing the appeal. The decision highlighted the unsustainable nature of the Additional Commissioner's order and the Commissioner (Appeals) decision, emphasizing the importance of complying with Notification particulars for availing Modvat credit.