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TMI Blog1995 (10) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... emsp;In reply to the show cause notice, the appellants submitted that HCL was a Government of India Undertaking and there was a trade notice, based on Central Board of Excise and Customs' (C.B.E.C.'s) letter which clarified that certificates issued by Public Sector Undertakings/Canalising Agencies like M.M.T.C./S.T.C., enable an assessee to take MODVAT Credit facility under Rue 57A. Ld. Advocate has submitted that C.B.E.C.'s letter No. 267/17/88-CX. 8, dated 19-2-1988 is cited at para 6 in Tribunal's Judgment in the case of Devidayal & Mahendra Corporation v. C.C.Ex., New Delhi reported in 1995 (75) E.L.T. 659 (Tribunal). In view of the above, it was submitted that the certificates of HCL are valid for the purpose of taking MODVAT Credit. 1.3 Assistant Collector did not accept the aforesaid contention and held as follows :- "....... In the said letters the facility to avail credit on the basis of certificates issued by Public Sector Undertakings/Canalising Agencies like MNTC/HTC has been made available by the Board. But in the said letters Board has not indicated that Modvat Credit will be available on the basis of the certified challans issued by M/s. H.C. Ltd. I also draw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Trade was informed that in case of import of any inputs canalised through Public Sector Corporation like MMTC, STC, IPCL etc., the certificates issued by them endorsing payment of countervailing duty, could be accepted as duty paying documents and credit under Modvat Scheme could be taken on the strength of such certificates. 2. Instances have come to the notice of the department that the persons, to whom such certificates are issued by the aforementioned Public Sector Corporations, on transfer or sale of these inputs, endorse these certificates to transferees/buyers, who, in turn, on the strength of such endorsed certificates, have raised Modvat credit of duty by treating these endorsed certificates as duty-paying documents. 3. It is reiterated that the certificates issued by the Public Sector Corporations are only considered as duty-paying documents for the purpose of rules 56A and 57G and these certificates cannot be further endorsed to anybody for availing Proforma/Modvat credit. Such endorsed certificates are, therefore, not treated as duty-paying documents for these rules and, therefore, no credit can be raised on such endorsed certificates. 4. It is also no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailing duty from the Customs authority on the aforesaid quantity of imported material covered by this certificate. Regional Manager 3.3 We also reproduce Trade Notice No. 93/89, dated 16-11-1989 relied upon by the Assistant Collector in his Order-in-Original as also the intervening Trade Notice No. 21/89, dated 24-2-1989 and Trade Notice No. 68/89, dated 25-8-1989 of Bombay Collectorate-I. Reading upto Trade Notice No. 93/89, as follows :- "TRADE NOTICE NO. 21/89, DATED 24-2-1989 Attention of the Trade is invited to this Collectorate Trade Notice No. 37/88, dated 15-3-1988 under which the trade was informed that in case of import of any inputs canalised through public sector corporation like M.M.T.C., STC, L.P.C.L. etc., the certificates issued by them endorsing payment of countervailing duty, could be accepted as duty-paying documents and credit under Modvat scheme could be taken on the strength of such certificates and that such certificates cannot be further endorsed to any body for availing of Modvat credit. 2.&ems ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority for treating the duty-payment certificates of P.S.Us. as G.P.Is. for taking MODVAT Credit. But reading the subsequent Trade Notices No. - 21/89, dated 24-2-1989, 68/89, dated 25-8-1989 and 93/89, dated 16-11-1989 - leave no doubt that the initial Trade Notice No. 37/88, dated 15-3-1988 has to be read as an authority for treating duty-payment certificates of all P.S.Us. as valid for the purpose of taking MODVAT Credit. And the position continued upto 15-11-1989, i.e. before issuance of Bombay Collectorate Trade Notice No. 93/89, dated 16-11-1989 which categorically stated that ....."it has been decided that certificates issued only by SAIL/TISCO in respect of indigenous inputs can be accepted for granting MODVAT Credit and not by any other Public Sector Undertakings...." 4.2 On conjoint reading of the various trade notices (supra) it appears that MODVAT Credit taken on the strength of HCL certificates during the period, July, '90 to October, '90, was not correct since the aforesaid period occurs after the crucial date, 15-11-1989, mentioned in para 4.1 above. Tribunal's Judgment in Devidayal & Mahendra Corporation (supra) does not take into account subsequent Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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