2001 (1) TMI 492 - AT - Central Excise

Summary

Issues: Modvat credit availability based on Gate Passes with incorrect address.

Issue 1: Modvat credit availability based on Gate Passes
The appeal questioned the availability of Modvat credit for M/s. Rewa Fan Industries based on Gate Passes not issued in their name or endorsed in their favor. The Appellant contended that the inputs were sent to their job workers stationed at Varanasi by the manufacturers, and due to the location of their Head Office in Varanasi, the address on the Gate Passes showed Varanasi instead of Rewa. The Appellant argued that the incorrect address should not prevent them from availing the Modvat credit, citing a precedent where a similar rectifiable defect did not bar credit. The Respondent, however, highlighted that the address discrepancy was evident on the Gate Passes.

Issue 2: Time limit for raising demand
The Appellant raised a crucial point regarding the time limit for raising the demand, asserting that the first show cause notice was beyond the statutory period of six months and did not invoke the extended period due to the absence of allegations of suppression. The Appellant emphasized that the duty paying documents were submitted on time, and the incorrect address was a rectifiable error. The Adjudication Order also confirmed the non-existence of a unit named "M/s. Rewa Fan Industries at Varanasi," supporting the Appellant's position. The judgment referenced a previous case to establish that Modvat credit should not be denied solely based on an incorrect address mentioned by the supplier.

Conclusion
After considering both parties' arguments and the findings in the Adjudication Order, the judgment favored the Appellant. It was established that the absence of a unit at Varanasi and the receipt of inputs by the Appellant justified the availability of Modvat credit despite the address discrepancy on the duty paying documents. The judgment upheld the Appellant's contentions regarding the time limit for raising the demand, as no allegations of suppression were made within the statutory period. Consequently, the impugned order was set aside, and the appeal was allowed in favor of M/s. Rewa Fan Industries regarding the availability of Modvat credit based on Gate Passes with an incorrect address.