2013 (6) TMI 439 - AT - Central Excise

Cenvat / Modvat Credit - denial of credit for non-filing of 57F declaration - Held that - there is no dispute about submissions of duty paying documents to the Revenue along with the returns filed by the appellants. The Revenue is also unable to find out the said documents inasmuch as the matter is quite old. We also find that in terms of remand order of the Tribunal, such duty paying documents are required to be produced. As such, we are of the view that it would be just and proper to allow the Cenvat credit on the basis of photocopies of the invoice, wherever the appellant is able to produce the same. Where there are no duty paying documents available, either with the appellant or with the Revenue, the credit is to be disallowed.

Summary

Issues:
Availability of modvat credit in respect of lead ingots based on duty paying documents.

Analysis:
The dispute in the appeal revolves around the availability of modvat credit concerning lead ingots based on duty paying documents. The original issue stemmed from the denial of credit due to the non-filing of a 57F declaration. The Tribunal's Final Order No. A/315/03-NB(C) dated 28.8.2003 favored the appellant, stating that they are entitled to modvat credit upon presenting duty paying documents. The current impugned order by the lower authorities focuses on verifying the duty paying documents provided by the appellant. The Commissioner (Appeals) denied the credit as the sample photocopies of invoices submitted did not represent the entire modvat credit. The appellant's advocate acknowledged the age of the matter and the unavailability of all duty paying documents, suggesting that these documents were filed with the Revenue and should be in their possession. Despite the original dispute being about non-filing of declaration, the denial of credit due to document unavailability was deemed unjustified.

The appellant's advocate conceded that as per the Tribunal's order dated 28.2.2003, credit must be allowed upon presenting duty paying documents. He argued that even when invoices or duty paying documents were available, the Revenue failed to extend the benefit in those instances. The appellant requested that credit be granted based on photocopies of invoices they could provide. Upon hearing the learned DR, it was established that duty paying documents were indeed submitted to the Revenue alongside the returns. However, due to the matter's age, these documents were not traceable. In line with the Tribunal's remand order, the duty paying documents must be produced. Consequently, it was deemed fair and just to grant Cenvat credit based on photocopies of invoices whenever the appellant could furnish them. In cases where no duty paying documents were accessible to either party, the credit was to be disallowed.

In conclusion, the impugned order was set aside, and the matter was remanded to the original adjudicating authority to determine the appellant's entitlement to Cenvat credit. The decision was pronounced in court on 29.01.2013.