2000 (2) TMI 617 - AT - Central Excise

Summary

Issues:
1. Disallowance of Modvat credit on inputs and capital goods.
2. Appeal against Additional Commissioner's order.
3. Decision of Commissioner (Appeals) allowing Modvat credit.
4. Acceptance of Indian Oil Corporation's invoices for Modvat credit.

Analysis:
1. The respondents, engaged in manufacturing Hosiery and Knitting machines needles, were availing Modvat credit under Central Excise Rules. The Additional Commissioner disallowed inputs and capital goods credit, imposing a penalty. In the appeal, the Commissioner (Appeals) allowed Modvat credit for specific items. The Revenue appealed against this decision.

2. Upon careful examination, the Judge found the Revenue challenging the Commissioner (Appeals) decision without specifying why the earlier decision's ratio was inapplicable. Not finding substantial grounds for the appeal, the Judge declined to interfere with the Commissioner (Appeals) decision on Modvat credit for specific items.

3. Regarding the credit taken based on Indian Oil Corporation's invoices, the Judge rejected the Revenue's argument against the lower appellate authority's decision. The Judge noted that the issue was whether the invoices were valid for Modvat credit, citing a Tribunal decision supporting the respondents. The Judge dismissed the Revenue's appeal, citing the precedent and lack of merit.

4. The judgment concludes by affirming the decision in favor of the respondents, rejecting the Revenue's appeal. The Judge found no merit in the Revenue's arguments, upholding the lower appellate authority's decision regarding the acceptance of specific invoices for Modvat credit.