1996 (11) TMI 260 - AT - Central Excise

Summary

Issues:
Appeal against Commissioner (Appeals) order dated 25-6-1996 - Modvat credit denial - Bill of entry discrepancy - Consignment receipt - Duty particulars in invoice-cum-challan.

Analysis:
The appellant appealed against the Commissioner (Appeals) order concerning the denial of Modvat credit. The appellant argued that despite the small amount involved, the appeal should be admitted and heard due to significant points covered by Board's circular and Tribunal's order. The first issue highlighted was a discrepancy in the bill of entry, showing the appellant's office address in New Delhi while goods were received at the factory in Sahibabad with possession of form 31 from Sales Tax Department. The appellant could prove through factory records that the consignment was received at the factory. The second issue pertained to two consignments received under original invoices, where Modvat credit was disallowed based on the timing of an amendment in Rule 57G(2). The appellant contended that the amendment was clarificatory and retrospective, citing a Tribunal's precedent. The third issue raised was the absence of duty particulars in the invoice-cum-challan, which the appellant refuted by providing a document showing duty particulars and explaining the return and re-supply of defective pieces under Rule 173H.

The Tribunal considered the submissions and admitted the appeal despite the small amount involved. The first issue regarding the bill of entry discrepancy was found to be covered by a Board's Circular, supporting the appellant's position. The second issue concerning the receipt of goods under original invoices was also supported by a Tribunal's order in a previous case. Regarding the absence of duty particulars, the Tribunal noted that the provided document did show the particulars, and the Department agreed that verification was necessary for satisfaction. Consequently, the appeal was accepted, but the matter was remanded back to lower authorities for verification of the bill of entry regarding goods receipt and the invoice-cum-challan for gate pass and duty particulars. The Tribunal acknowledged the Tribunal's order precedent for the two consignments received on original invoices and accepted the appellant's affidavit and undertaking. The appeal was disposed of with these findings and observations.