2000 (8) TMI 547

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..... rder]. - This Reference Application has been filed by the Commissioner of Central Excise, Chandigarh for referring a point of law to the Hon'ble High Court of Punjab and Haryana at Chandigarh under Section 35G(1) of the Central Excise Act, 1944. 2. The following question of law has been formulated by the Commissioner for reference: "Whether failure to make enquiries about traders and fail .....

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..... al Excise Rules, 1944 read with its Explanation prescribing that the assessee should satisfy himself about the identity and address of the manufacturer or supplier, as the case may be, issuing the duty paying document. The Department had alleged that the duty paying documents under the cover of which the assessee had taken Modvat credit were issued by non-existent units or issued in favour of non- .....

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..... o a supplier from Calcutta. The Tribunal had noted that in many cases Gate Passes are not directly endorsed by the manufacturer to the assessee who takes the credit finally, but they pass through one or more intermediary units. In such situations it would not be reasonable to expect that the assessee would be able to satisfy himself about the genuineness of the manufacturers of the goods. In the c .....

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..... gh Court of Punjab and Haryana at Chandigarh. 7. I have considered the submissions and perused the record. The Final order under consideration had followed the reasoning adopted in the earlier decision of the Tribunal in Sharu Steel Co. Ltd. and it was observed that where the Gate Passes ultimately received by the manufacturer of the final products has passed hands a number of times before i .....

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..... the strength of a certificate issued to the manufacturer or the supplier by the Superintendent of Central Excise within whose jurisdiction such manufacturer has his factory or the supplier has his place of business subject to the proviso to the said Explanation. 8. In view of the above discussion, I accept the Reference Application and hereby refer the matter to the Hon'ble High Court of Pu .....

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