TMI Blog1998 (9) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise Customs (Pune) against the impugned orders 4 to 7 and 9/CEX/1998, dated 22-1-1998, 28-1-1998, 7-2-1998, 5-2-1998 and 4-2-1998, praying for quashing and setting aside the said orders, whereunder he has disallowed the Modvat credit on some of the inputs and to hold that the denial of Modvat credit on Technical/Procedural defects is illegal and unjustified and the appellant is not liable to pay the said duty as confirmed in the above orders. 1. The facts of the case are that the appellant manufactures motor vehicles parts thereof and I.C. Engines. It availed Modvat credit of the duty paid on inputs under Rule 57A of the Central Excise Rules. Show Cause Notices dated 1-3-1996, 29-3-1996, 2-4-1997 and 29-8-1996 were issued in disallowing the Modvat credit of the amount mentioned in the respective impugned orders on the grounds that : (i) Invoices do not bear printed serial numbers. (ii) The dealers invoices were not in the Pink colour, not authenticated by the Range Jurisdictional Superintendent under Notification No. 23/95 N.T. (iii) Invoices issued by M/s. HPCL and M/s BPCL dealers did not have three pre-printed names, address and regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted by the Department. He has drawn the attention to Rule 52A of the Central Excise Rules and further submitted that the Jurisdictional Central Excise Officers of the supplier of inputs have cleared the goods on correct documents, who has more responsibility in this regard, than the Jurisdictional Central Excise Officers of the appellant. Regarding the credit on steel shots, which is held as tools, is covered by the Larger Bench decision in the case of Shri Ramakrishna Steel Industries Ltd. v. Collector of Central Excise, and Union Carbide India Ltd. v. Collector of Central Excise, for the eligibility to the Modvat credit. There is no dispute about the payment of duty, and the utilisation of the input received in the manufacture of the final product, and the maintenance of the accounts and the documents, which can be co-related. The Assistant Collector is also intimated regarding the maintenance of the documents. The substantive benefit cannot be denied in view of the above factors on a technical omission or violations. He has further clarified the definition of printing under Rule 52A on the invoices in the background of the dictionary meaning, as a mark, an expression, an inden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of the duty paid on inputs under Rule 57A, shall file a declaration with the Assistant Commissioner of Central Excise having jurisdiction over his factory, indicating the description of the final products manufactured in his factory and the inputs intended to be used in each of the said final products and such other information as the said Assistant Commissioner may require, and obtain a dated acknowledgement of the said declaration. (2) A manufacturer who has filed a declaration under sub-rule (1) may, after obtaining acknowledgement aforesaid, take credit of the duty paid on the inputs received by him. Provided that no credit shall be taken unless the inputs are received in the factory under the cover of an invoice, issued under Rule 52A, an AR-I, or Bill of Entry or any other document as may be prescribed by the Central Government by Notification in the Official Gazette in this behalf evidencing the payment of duty on such inputs. Rule 52A of the Rules read :- Rule 52A - Goods to be delivered on an invoice. - (1)No excisable goods shall be delivered from a factory of a warehouse except under an invoice signed by the owner of the factory, or his authorised age ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) If all the packages comprising a consignment are despatched in one lot at any one time, only one invoice shall be made out in respect of the consignment. If, however, a consignment is split up into two or more lots each of which is despatched separately either on the same day or on different days, a separate invoice shall be made out in respect of each such lot. In case a consignment is loaded on more than one vehicle, vessel, pack animal or other means of conveyance which do not travel together but separately or at intervals, a separate invoice shall be made out in respect of each vehicle, vessel, pack animal or other conveyance. (5) Invoice shall be maintained in two sets - (i) one for clearance for home consumption; and (ii) the other for clearance for export. (6) Each invoice shall bear a printed serial number running for the whole year beginning on first January of each year. Only one invoice book of each type shall be used by a factory for removal of excisable goods at any one time unless otherwise specially permitted by the Commissioner in writing. (7) Each foil of the invoice book shall be authenticated by the owner or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the manufacture of final products. In the case of Union Carbide India Ltd., it is held that words "in relation to the manufacture" has been used to widen and expand the scope, meaning and content of the expression inputs so as to attract also goods which do not enter directly or indirectly into the finished product, but are used in any activity concerned with or pertaining to the manufacture of finished goods (Paras 16 17) spares of machine and other goods referred to in exclusion clause (1) of the explanation to Rule 57A of the Central Excise Rules are eligible inputs in Modvat credit therefore are admissible in spares of machine (18 III)". In Shri Ramakrishna Steel Industries the Larger Bench has held that in Rule 57A of the Central Excise Rules, the expression in relation to the manufacture is an expression of considerably large import and the Modvat credit is admissible in respect of duty paid on the inputs used in the preparation, in the process of manufacturing final product steel castings. So in the light of the above rulings the present case is considered below. 6. Point for consideration is whether there are sufficient grounds to allow the appeals question? My ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paying documents cleared by the Jurisdictional Central Excise Authorities of the supplier along with the inputs, and the same reaching the appellant, and the appellant used the same in the manufacture of the final products, and paying duty thereon. As contended by the appellant, it is held that if the copy is not clear as to whether original or duplicate (for transporter), the manufacturer availing credit cannot be penalised for the lapses on the part of the supplier. In such cases, it is noteworthy that the manufacturer should not be denied the benefit as per the decision in 1998 (98) E.L.T. 439 in the case of Collector of Central Excise v. GEC Alsthom India Ltd. (T-SZB). Hand written description, hand-written vehicle number and serial number do not impute mala fide to the manufacturer and the credit cannot be denied for such reasons as per Nahar Spinning Mills Ltd. v. Collector of Central Excise - 1998 (97) E.L.T. 127. 11. Under Rule 52A of the Central Excise Rules as narrated above under Clause (3) the copies of the invoices shall only be marked at the top in capital letters as mentioned therein. So, as contended by the appellant, the question of printing does not arise, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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