9911796707
Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be fully migrated on 31-July-2025 at 23:59:59
After this date, all services will be available exclusively on our new platform.
If you encounter any issues or problems while using the new portal,
please let us know
via our feedback form
, with specific details, so we can address them promptly.
Follow us:
|
Home
2002 (6) TMI 464 - AT - Central Excise
Issues:
Modvat credit availed on invoices not received by registered dealers under Rule 57GG of Central Excise Rules, 1944. Applicability of Circular No. 107/18/95-CX and Circular No. 96/7/95-CX regarding Modvat credit in transit sales. Validity of Modvat credit availed by the appellants for goods not brought to their premises. Issue 1: Modvat credit availed on invoices not received by registered dealers under Rule 57GG of Central Excise Rules, 1944. The appellants manufactured various goods and availed Modvat credit based on invoices from registered dealers for molasses. The Deputy Commissioner disallowed the credit citing Circular No. 107/18/95-CX, stating that Modvat invoices cannot be issued until goods are received by the dealers. The Commissioner (Appeals) upheld this decision, leading to the current appeal. Issue 2: Applicability of Circular No. 107/18/95-CX and Circular No. 96/7/95-CX regarding Modvat credit in transit sales. The appellant's counsel referred to Circular No. 96/7/95-CX, arguing for Modvat credit in transit sales where goods are sent directly to a job worker. However, the Tribunal found this circular inapplicable as it pertains to direct supply to end-users, not job workers. The invoices did not mention the appellants or the registered dealers as per the circular requirements, leading to the dismissal of this argument. Issue 3: Validity of Modvat credit availed by the appellants for goods not brought to their premises. The Tribunal noted that the molasses were sent to a job worker for conversion, not directly to the appellants as end-users. The invoices did not comply with Circular No. 96/7/95-CX requirements, lacking details of consignee and registered person's instructions. As a result, the Tribunal upheld the Commissioner (Appeals) decision, dismissing the appeal due to lack of merit. This judgment clarifies the limitations of Modvat credit under specific circumstances, emphasizing the importance of compliance with circular instructions for availing such credits.
|
