2010 (9) TMI 949 - JHARKHAND HIGH COURT

MODVAT credit - The case of the department is that M/s. Clutch Auto Ltd. did not actually deposit the excise duty, which was payable on the said inputs, which were supplied to the assessee - Held that: - Once a buyer of inputs receives invoices of excisable items, unless factually it is established to the contrary, it will be presumed that when payments have been made in respect of those inputs on the basis of invoices, the buyer is entitled to assume that the excise duty has been/will be paid by the supplier on the excisable inputs. The buyer will be therefore entitled to claim Modvat credit on the said assumption.

So far as remaining amount of Modvat credit is concerned, Because of the complete silence in the Tribunal’s order on the said remaining issues, we remand the case back to the Tribunal after setting aside that portion of the impugned order - matter on remand.