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2001 (1) TMI 723 - AT - Central Excise
Issues:
Disallowance of Modvat credit by the Commissioner (Appeals) based on Order-in-Appeal affirmed by the Additional Commissioner. Analysis: The appellants, engaged in manufacturing various gases, availed Modvat credit but faced disallowance of Rs. 1,70,460.30 by the Additional Commissioner, which was confirmed by the Commissioner (Appeals). The dispute arose due to the inadmissibility of the credit as per Rule 57G(2) amendment. The appellants claimed they had submitted an application for permission to avail Modvat credit on original invoices after losing transporter's copies. However, the authorities found discrepancies in the appellants' submissions regarding the loss of transporter's copies and the timing of their application. The Commissioner (Appeals) upheld the disallowance based on these grounds. The appellants argued that Rule 57G(2A) permitted Modvat credit on original invoices if duplicate copies were lost, and they were entitled to such credit retrospectively. However, the JDR contended that the appellants failed to provide satisfactory evidence of the loss of original copies or timely intimation to the authorities. The Tribunal noted that no intimation of loss was given by the appellants, and the application for permission to take credit on original invoices was delayed. The Tribunal emphasized that Rule 57G(2A) did not have retrospective effect and could only be applied prospectively from its insertion in May 1994. The Tribunal rejected the appellants' reliance on previous judgments, highlighting that Rule 57G(2A) did not clarify existing provisions but introduced a new power for the Assistant Commissioner to allow credit on original invoices in case of lost duplicates. As the appellants failed to prove the loss of duplicate copies and did not follow the required procedures, the disallowance of Modvat credit on original invoices was deemed justified. Consequently, the appeal was dismissed, upholding the decision of the Commissioner (Appeals) and the Additional Commissioner.
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