2000 (11) TMI 436 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit due to incomplete particulars on invoices; Denial upheld by lower appellate authority; Appeal against denial of Modvat credit.

Analysis:
The Asstt. Commissioner of Central Excise denied Modvat credit to the appellants amounting to Rs. 2,63,493 against four invoices issued by M/s. Mount Synthetics Ltd., Ahmedabad, as the invoices lacked necessary particulars for verification of authenticity. The Range Superintendent's report stated that verification was not possible due to the dealer's failure to file monthly returns, leading to the conclusion that the documents were irregular and credit should be denied. A penalty of Rs. 20,000 was also imposed under Rule 173Q(1)(bb).

The Commissioner (Appeals) Jaipur upheld the original authority's findings, prompting the present appeal. The appellant argued that due to the closure of their factory and the dealer's business winding up, the particulars could not be provided. The appellant presented the triplicate copy of the bill of entry for verification, emphasizing that duty payment was not in dispute, warranting Modvat credit.

The Revenue representative reiterated that the invoices were invalid for Modvat credit due to missing prescribed particulars. During the hearing, the Tribunal noted that while certain particulars were absent in the invoices, the duty payment details were undisputed. The Range Officer confirmed the dealer's registration but could not verify duty payment due to missing returns. The Tribunal found the missing particulars irrelevant to duty payment and Modvat credit availment, thus allowing the appeal and overturning the lower authority's decision.