2004 (3) TMI 619 - AT - Central Excise

Summary

Issues: Modvat credit denial on aluminium foils, closure-stock coil

Modvat credit denial on aluminium foils:
The Appellate Tribunal upheld the denial of Modvat credit on aluminium foils as the Commissioner (Appeals) found that the written additions in the Modvat declaration to include aluminium foils were considered an attempted forgery. Despite no representation from the appellants, the Tribunal agreed with the Commissioner's findings that aluminium foils were not declared, leading to the denial of credit on this item.

Modvat credit denial on closure-stock coil:
Regarding the denial of Modvat credit on closure-stock coil, the Tribunal accepted the appellants' contention that closure-stock coil is not the name of the commodity and is, in fact, aluminium sheets in coil form. Since aluminium sheets were declared in the Modvat declaration, the Tribunal found no reason to deny credit on closure-stock coils. However, due to the absence of a detailed breakdown of credit details, the Tribunal remanded the case for a fresh computation of duty to determine the entitlement of credit on closure-stock coils and the denial of credit on aluminium foils.

The Tribunal disposed of the appeal by upholding the denial of Modvat credit on aluminium foils due to non-declaration and allowing the credit on closure-stock coils, which were considered to be aluminium sheets in coil form. The case was remanded for a fresh computation of duty to adjust the credit entitlement based on the above findings.