2000 (12) TMI 577 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit based on alleged discrepancies in invoices.

Analysis:
The judgment concerns the denial of Modvat credit to the appellants due to discrepancies in invoices from November 1994 to February 1995. The appellants were denied credit based on alleged irregularities in the invoices. The advocate for the appellants highlighted the factual positions regarding the alleged irregularities. Several discrepancies were pointed out, such as invoices not being marked as duplicate, lack of authentication, and missing duplicate copies. The advocate argued that most discrepancies were rectified at a later stage, but the Commissioner (Appeals) did not consider them as they should have been presented to the Assistant Commissioner first. The advocate suggested that the matter should have been remanded to the Assistant Commissioner for verification. The Revenue did not oppose this course of action.

The tribunal acknowledged that the alleged irregularities were rectifiable in nature. It cited previous cases where procedural irregularities should not be the basis for denying credit to assessees. Considering the appellants' claim of rectification, the tribunal set aside the adverse portion of the order and remanded the matter to the original adjudicating authority for verification. The tribunal instructed the authority to consider relevant tribunal decisions and appreciate the law laid down in various cases cited by the advocate. The appeal was allowed by way of remand, and the stay petition was disposed of. The appellants were granted an opportunity to present their defense and supporting documents during the fresh adjudication.

In conclusion, the judgment focused on rectifiable discrepancies in invoices leading to the denial of Modvat credit. The tribunal emphasized the need to give assessees a chance to rectify such procedural irregularities and remanded the matter for fresh adjudication, considering relevant legal precedents and tribunal decisions.