2000 (8) TMI 458 - AT - Central Excise

Summary

Issues involved:
Stay application for waiver of pre-deposit of duty amount and stay of recovery proceedings. Interpretation of Modvat credit on lost duplicate invoice in transit.

Analysis:
The case involved a stay application for the waiver of pre-deposit of duty amount and stay of recovery proceedings. The main issue discussed was the interpretation of whether a party can avail Modvat credit on a copy of the original invoice if the duplicate copy is lost in transit. The appellant argued that the Assistant Commissioner had decided in favor of the party, but the Revenue filed an appeal stating that transit of the duplicate copy covers up to the Range Office, contrary to the decision of the Larger Bench in a previous case. The Tribunal analyzed the relevant rule and held that the duplicate copy of the invoice must have been lost in transit from the person who sold the input to the office of the concerned excise officer for the manufacturer to take credit of the duty paid on inputs. The Tribunal emphasized that the legal position required the manufacturer to establish the loss of the duplicate copy in transit to the satisfaction of the Assistant Collector to avail of the credit based on the original invoice.

The arguments presented by both parties were considered by the Tribunal. After reviewing the facts and circumstances, along with the decision of the Larger Bench, the Tribunal found that the prima facie case was in favor of the party seeking the stay application. Consequently, the stay application was allowed unconditionally. Despite the high stake amount involved, the matter was scheduled for regular hearing on a later date to delve deeper into the issue. The Tribunal's decision was based on the interpretation of the legal provisions regarding the loss of the duplicate invoice in transit and its impact on availing Modvat credit, ensuring a fair consideration of the parties' arguments and legal positions.