2002 (11) TMI 714 - AT - Central Excise

Summary

Issues:
1. Availing credit on the basis of original invoices and subsequent procurement of duplicate invoices after a period of six months.
2. Denial of credit on the basis of original invoices due to loss of duplicate copies and failure to seek prior permission from the jurisdictional Central Excise authorities.

Analysis:
1. The first issue revolves around the appellants availing credit based on original invoices and later obtaining duplicate invoices after six months, leading to a dispute under Rule 57G(2). The appellant argued that the initial credit was taken within the stipulated time frame, citing precedents where delayed availing of credit was not prohibited by rules. The Tribunal's decisions in similar cases supported the appellant's stance, emphasizing that re-crediting after six months, following initial credit within the timeframe, was permissible. Consequently, the demand of duty on this count was set aside, considering timely receipt of inputs and initial credit availing.

2. The second issue concerns the denial of credit due to using original invoices after losing duplicate copies without prior permission. The appellants contended that they informed the Asstt. Commissioner about the loss and sought permission, supported by transporter affidavits. However, the Asstt. Commissioner did not address the loss issue and instructed to reverse the credit taken on original invoices. The Tribunal opined that if duplicates were lost and due process followed, the Asstt. Commissioner should have considered the loss grounds and allowed the credit. Therefore, the matter was remanded for fresh adjudication, directing a review of the demand's timeliness and consideration of the loss claim. The appellant was granted a personal hearing opportunity before the final order.

In conclusion, the judgment addressed the conflicting issues of availing credit based on original vs. duplicate invoices and the procedural aspects related to seeking permission for credit under Central Excise rules. The Tribunal's decisions and adherence to procedural fairness were central to resolving the disputes and ensuring a just outcome for the appellants.