9911796707
TMI Blog1997 (8) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... king credit. There is no provision that endorsed invoice is valid for taking of Modvat credit. Earlier practice of accepting endorsed gate passes for the purpose of Modvat credit is no longer legal in view of the provisions of Notification 15/94. 2. Learned advocate for the appellant has urged that it is not that the Modvat credit has not been taken on an invoice issued after 1-4-1994; objection of the Revenue is that it is not the invoice of the dealer from whom the appellant purchased the input; it is the invoice of SAIL, the manufacturer, which has been endorsed twice before it came to the appellant. In other words, the SAIL sold the inputs to a dealer `X who while selling the entire consignment on the invoice to `Y endorsed the SAIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Board in exercise of its statutory powers under Rule 57G to prescribe certain documents for the purpose of taking Modvat credit. That notification does not include an endorsed invoice as a prescribed document. It includes, inter alia, an invoice issued by a dealer. In the absence of legal validity of the document for the purpose of taking the Modvat credit, the act of taking Modvat credit as also the Modvat credit itself is illegal. He, submits that question of mere procedural infraction arises when a given procedure is required to be followed but that has not been followed in toto. There has been some deviation from that given procedure. Present case, it is submitted by the learned JDR, is not one of deviation from the procedure but i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to maintain account of receipt and sale or utilisation of excisable goods. Chain of invoices issued by successive seller/purchaser coupled with the account required to be maintained by such person facilitates checking and correlation with the immediate previous seller. Endorsement of the invoice as such by a dealer to his purchaser disrupts this chain and puts a block in easy checking and correlation. I am, therefore, of the view that the procedure adopted by the dealers and purchase of the excisable inputs by the appellant without the invoice from the seller (dealer) is not a minor procedural deviation worthy of being condoned. When the Notification 15/94 envisages taking Modvat credit, inter alia, on a dealer s invoice, it means ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
