2000 (11) TMI 839 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat credit based on incomplete invoices.
2. Validity of invoices issued by different suppliers.
3. Rectifiability of missing particulars in invoices.
4. Allegation of duty payment by M/s. Hero Cycles.
5. Relevance of Notification 16/94.
6. Jurisdictional issues regarding the authority deciding the case.

Analysis:
1. The appeal was filed against the Commissioner (Appeals) order denying Modvat credit due to incomplete invoices issued by suppliers after 4-7-1994. The invoices lacked essential particulars like dealer/distributor information and master invoice details, leading to the denial of credit.

2. The Commissioner (Appeals) found that while some invoices were valid for credit, others lacked necessary details. Invoices from SAIL were deemed invalid due to missing documents substantiating duty transfer, but credits were allowed for Hero Cycles, Ash & Allen, and Indo Roll Hard Industries invoices with verifiable particulars.

3. The Tribunal noted that deficiencies in the SAIL invoices were rectifiable, and credits could be granted based on corrected inputs with master invoices. The registration of SAIL's Ludhiana depot post-supply did not invalidate the invoices, as rectifiable mistakes were present.

4. Regarding duty payment by M/s. Hero Cycles, the Tribunal found that the endorsement on SAIL depot invoices did not render them invalid. The lower authorities' denial of Modvat credit without considering detailed explanations from the appellants was deemed unjustified.

5. The reference to Notification 16/94 by the Commissioner (Appeals) was considered irrelevant, and findings based on original duty payment documents of SAIL were deemed beyond the show-cause notice scope, requiring appropriate notice to the appellants.

6. Jurisdictional issues arose as the Assistant Commissioner, not the Collector, decided the case without proper explanation or legal authority, rendering the proceedings invalid. Consequently, the Tribunal set aside the order and allowed the appeal based on the identified issues and findings.