2001 (1) TMI 354 - AT - Central Excise

Summary

Issues:
1. Modvat credit on Gate Passes issued before 1-4-1994.
2. Disallowance of Modvat credit on invoices from depots/distributors.
3. Modvat credit on documents addressed to the Headquarters office.

Analysis:

1. Modvat Credit on Gate Passes:
The appeal challenged the demand of duty based on Modvat credit taken on Gate Passes issued before 1-4-1994. The appellant argued that a previous Tribunal decision allowed Modvat credit on such Gate Passes until 30-6-1994. The Tribunal agreed with this argument, citing the precedent set by the case of M/s. Moosa Haji Patrawala (P) Ltd., thus allowing Modvat credit on Gate Passes issued before 1-4-1994 and endorsed until 30-6-1994.

2. Disallowance of Modvat Credit on Invoices from Depots/Distributors:
The dispute centered on the disallowance of Modvat credit on invoices from depots/distributors before 12-5-1994. The appellant relied on Circular No. 76/76/94-C.X. issued by the Central Board of Excise and Customs, which clarified the eligibility for Modvat credit based on specific notifications. Referring to the case of M/s. Fine Core Cables (P) Ltd., the Tribunal held that Modvat credit could indeed be claimed on invoices from depots/distributors before 12-5-1994 in line with the Circular's provisions.

3. Modvat Credit on Documents Addressed to Headquarters:
The third issue involved claiming Modvat credit based on documents addressed to the Headquarters office, even though the goods were sent to the factory premises. Citing the case of M/s. Ramgarh Chini Mills, the appellant argued that the address on the document should not disqualify them from claiming Modvat credit if the goods were received and utilized at the factory. The Tribunal agreed, stating that the address discrepancy did not affect the eligibility for Modvat credit, in line with the precedent set by previous decisions.

In conclusion, the Tribunal allowed the appeal, granting the appellants relief in accordance with the law. The judgment clarified the eligibility for Modvat credit on various grounds, including Gate Passes, invoices from depots/distributors, and documents addressed to the Headquarters office, providing detailed reasoning based on legal precedents and official notifications.