2001 (1) TMI 279 - AT - Central Excise

Summary

Issues:
1. Eligibility of lubricating oils and greases for Modvat credit.
2. Sufficiency of particulars in duty paying documents for Modvat credit.

Analysis:
1. Eligibility of Lubricating Oils and Greases:
The appellants had taken Modvat credit on lubricating oils and greases supplied by Indian Oil Corporation Ltd. (IOC) and Bharat Petroleum Corporation Ltd. (BPC). The Additional Commissioner disallowed the credit, stating these items were not eligible inputs for Modvat credit. The Commissioner (Appeals) upheld this decision. The appellant argued that a Larger Bench decision confirmed the eligibility of lubricating oils and greases for Modvat credit before 1-3-1997. The judge agreed with this argument, citing the case of CCE, Meerut v. Modi Rubber Ltd. The eligibility of rubber tubes for credit was not in question.

2. Sufficiency of Particulars in Duty Paying Documents:
The second issue revolved around whether the duty paying documents contained necessary particulars as per Notification No. 33/94. The appellant claimed that the impugned order was passed ex parte, and they had not been able to prove that the invoices contained all required particulars. They later submitted certificates from IOC and BPC to supplement the necessary particulars. The Judge noted that the lower appellate authority did not have access to these certificates. Additionally, the Commissioner (Appeals) did not consider the advocate's request for an adjournment, indicating a lack of opportunity for a fair hearing. The Judge found that the impugned order did not adhere to the principles of natural justice.

Conclusion:
In the interest of justice, the Judge remanded the question of the admissibility of the invoices, along with the input-manufacturers' certificates, back to the Commissioner (Appeals) for a fresh decision. The impugned order was set aside, and the appeal was allowed for this limited purpose, emphasizing the importance of following legal procedures and principles of natural justice in such cases.