9911796707
TMI Blog2003 (9) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... d the inputs, namely "electrolytic grade copper wire bars" for use in their' factory for manufacture of electric wires from Shobhit. However, the authenticity of the duty paying invoices issued to the appellants is doubted. 2.1. The facts of the case are more or less similar in all three cases. However, by way of illustration, the same are extracted from the case of M/s. Krishna Wires, (Krishna for short) one of the appellants. 2.2. Consequent to a search of office, godown and other premises of M/s. Shobhit Impex, by the Central Excise officials, show cause notice, dated 17-6-99 was issued to 12 manufacturers (users) of modvatable invoices proposing to deny the Modvat credit to the users/manufacturers, of various amounts. Krishna are al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into the transactions of M/s. Shobhit Impex (Importer) who are also dealer of imported goods (first stage dealer in terms of Rule 57-G of the Rules). In the enquiry, it has been revealed that, though dealer has a godown, its size is mere 12' x 8'. It was alleged to be inadequate to store and deal with the huge quantity of 482.60 MTs. of copper wire rods which Shobhit had imported over a period of time. The statement of various persons recorded during the investigation appears to have confirmed the fact that, the said invoices, though show despatch from Abohar godown, despatch to various customers was actually effected from the respective ports of import. The investigation further tried to corroborate the aforementioned position by contacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not co-relatable with the invoices. Except for making this observation, it has not been demonstrated as to how the goods pertaining to these invoices are ineligible for obtaining Modvat credit. The appellants have provided all the necessary evidence to demonstrate that the goods have actually been received in their factory (though from a different location than what is shown on the invoices) for which appropriate payment has been made to Shobhit, through demand drafts. There is no finding in the order that the copper wire rods of the respective quantities indicated in the individual invoices have not been received in the appellant's factory. Evidence of payment to Shobhit has not been disputed. Even if, it is assumed that the goods ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where invoices, which are in the name of the head office of the factory, while the goods are received in the factory at a different location, credit has to be extended. Therefore, manifesting a wrong despatch source on the invoices is curable defect and cannot curtail a substantial right of obtaining credit. There are no findings in the order to the effect that quantities of inputs despatched by Shobhit to the appellants have not been so despatched. The dispute is only to the extent that despatch source is not Abohar, but the respective customs port. The entire blame for this wrong endorsement must be attached only to Shobhit. The appellants have not contributed to the creation of wrong document and if at all, any penalty is called for, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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