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TMI Blog2004 (6) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... s available on endorsed invoice, under the provisions of erstwhile Rule 57G of Central Excise Rules, 1944 read with Notification No. 15/94-C.E. (N.T.), dated 30th March, 1994". 2.The facts giving rise to this application are that the respondent-assessee is engaged in the manufacture of Spun Yarn and is availing the benefit of Modvat credit in respect of inputs used by it in the manufacture of final product and during the period, with which this reference application concerns, it is availing the Modvat credit on certain inputs used by the respondent-assessee for its manufacture between 10th April, 1994 to 19th April, 1994. The respondent-assessee has not purchased the inputs directly from the manufacturer of those inputs namely; M/s. Terene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner (Appeals) when it was ultimately heard on merits, the only contention, between the assessee and the revenue urged before the Commissioner (Appeals), was that the assessee has availed the Modvat credit on the basis of invoices issued by the seller (RIL) without actually having received the excisable goods in its premises, as it was a case of transit sale. 5.The Commissioner (Appeals) specifically recorded that the impugned order does not deny the credit on the grounds that the documents were not endorsed. The Commissioner (Appeals) found that the Trade Notice dated 2-9-1994 No. 63/Bombay-III/Gen (33) 94, dated NIL and other parallel trade notices relied on by the Revenue do not require that goods should have physically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer. The Modvat credit is availed by the person who has actually used any duty paid goods as inputs in the manufacture of goods, of the excise duty paid on such inputs by the manufacturer of such goods and the credit has not been availed in respect thereof by any other person. In the present case, on facts it is not in dispute that the invoices were issued by the manufacturer, M/s. Terene Fibres India Ltd. in favour of M/s. Reliance Industries Ltd. and M/s. RIL has transferred the goods in favour of the respondent-assessee in transit, without receiving them in its godown by endorsing the invoices issued by the manufacturer as under : "The entire consignment covered under this invoice is endorsed to M/s. Rajasthan Spinning & Weavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case also about the fact that the endorsed invoices issued by the manufacturer evidenced payment of duty on such inputs. Therefore, the only controversy, which emanates from combined reading of the order of the Assessing Officer namely; Assistant Commissioner, Central Excise, goes to show that the impediment felt by the revenue in allowing the respondent-assessee to avail the Modvat credit was about the first dealer having sold the goods in transit by endorsing invoices before or without receiving the goods at its premises, before issuing invoices in favour of the respondent-assessee and the invoices issued by the manufacturer were endorsed evidencing the transfer of goods in transit, which carried with it proof of payment of dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that what is required is a bill of entry evidencing payment of duty on such inputs whether such imported goods are used by importer for manufacture or the importer himself does not use the goods to manufacture as inputs but transfers to other who use such imported goods as inputs in manufacturing. In latter case, it is further required to prove that importer has not availed refund or dues paid by him while claiming adjustment against countervailing duty". 14.Having thus concluded, the Court further found on that count no question of law arises for considering whether the endorsed bill of entry can be considered as a document, fulfilling the requirement of Rule 57G(2) of producing the prescribed documents. 15.Moreover, the trade notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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