Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 617 - HC - Central ExciseDenial of Modvat / CENVAT Credit - Endorsement of invoice - transfer of goods in transit - Invoices not in the name of manufacturer - Held that:- Thus, the goods were transferred to the respondent-assessee by the first purchaser in transit by making an endorsement on the invoices received by him, which was the document of title in the goods and is a normal mode of transacting the goods in transit. It is also not in dispute that the subsequent purchasers of the inputs using the same in the manufacturer of goods can avail the Modvat credit and it need not be availed by purchaser at the fist instance, as the first purchaser need not be a manufacturer by himself. That is even clear from reading of Rule 57G, which was in force at the relevant time. There is no dispute about the fact that the assessee has furnished the declaration required by him under subrule (1) of Rule 57G of Central Excise Rules. Endorsed invoices issued by the manufacturer evidence 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 duty on such inputs. on the basis of the endorsed invoices issued by the intermediatory purchaser and the invoices issued by the manufacturer, the assessee shall be entitled to claim the credit on the goods, on which the manufacturer has paid the duty - Following decision of UNION OF INDIA Vs. RAJASTHAN SPINNING & WEAVING MILLS LTD [2004 (6) TMI 45 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR] - Decided in favour of assessee.
|