2009 (7) TMI 938 - AT - Central Excise

Summary

Issues involved: Claim of deemed Modvat credit on inputs; Rejection of claim by authorities; Transportation of goods from Tamil Nadu to appellant's factory; Applicability of Circulars by the Board.

Summary:
The appellant, engaged in the manufacture of fabrics, filed declarations of inputs and final products for availing transitional credit u/s 3 of Rule 9(A) of the Cenvat Credit Rules, 2003. The authorities rejected their claim of deemed Modvat credit due to discrepancies in the declarations. The appellant presented lorry receipts as evidence of goods being transported, but this was dismissed by the Commissioner (Appeals) citing the inability to verify transportation to the factory.

In a related case, the Tribunal held that deemed credit can be availed for materials at locations other than registered premises, as per Board Circulars. Non-disclosure of location and transporter details cannot be a basis for denying deemed credit. Another Circular allowed manufacturers to file additional declarations by a specified date to claim one-time credit on stock. The Tribunal emphasized that even if stock had not physically reached the appellant's premises but was purchased by them, deemed credit should be granted.

Therefore, the Tribunal set aside the impugned orders and remanded the matter for fresh consideration by the Original Adjudicating Authority in light of the relevant Circulars and the Tribunal's decision, ultimately allowing the appeal by way of remand.