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TMI Blog2008 (12) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... e, appeared on behalf of the assessee and Shri V.P.C. Rao, the learned SDR, for the Revenue. 3. We heard both sides. 4. The issue relates to the denial of the Cenvat credit availed by the assessee to the tune of Rs. 1,99,09,514/- on 15-1--2001. In fact, the amounts were paid by their Delhi Factory on various dates. It would be better to explain the background leading to the denial of Cenvat credit. The assessee has a factory at New Delhi where they manufacture 'Semi-finished Ayurvedic Medicines'. The assessee was of the view that the said 'Semi-finished Ayurvedic Medicines' are not excisable. Consequently, they cleared those goods to their sister unit at Bangalore without payment of duty. The Excise officials at New Delhi procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice was issued. At a later period, the assessee made certain deposits and they have taken credit. Further, the documents had also been generated at a later date. In view of this, he stated that the said documents are not admissible for the purpose of taking Cenvat credit in terms of the Cenvat Credit Rules and Central Excise Act also. However, the receipt of the goods and the payments of the deposits/duty is not in doubt. It was further stated by the learned Advocate that the appellants had pursued alternative remedies before the Delhi Central Excise authorities and the matter is now pending before the Delhi Commissioner (Appeals). 6. The main thrust of the learned Advocate is that in the peculiar circumstances of the case, the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount. Therefore, it is very clear that the assessee is entitled for the credit of duty deposited. The receipt of the goods at Bangalore is not disputed. The duty deposit is also not in dispute. Secondly, by law, the assessee is entitled for the credit. The invoices could not have been issued at the time of clearance in the circumstances of the case. The reason is that at the time of clearance, the assessee was under the bona fide belief that the goods would not be assessed. Therefore, even if the documents are not in accordance with the Cenvat Credit Rules, this should be treated as only a technical lapse. For such breach, substantial credit cannot be denied. Therefore, we allow the appeal of the party with consequential relief. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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