2003 (10) TMI 595 - AT - Central Excise

Summary

Issues: Modvat credit dispute of Rs. 3,55,759 and penalty of Rs. 1,50,000.

Modvat Credit Dispute:
The case involved a dispute over the Modvat credit of Rs. 3,55,759 and a penalty of Rs. 1,50,000. The appellants had paid additional duty of customs on a shipment of Butyl Rubber and claimed credit based on the triplicate copy of the bill of entry. However, the triplicate copy was allegedly lost, leading to a show cause notice. The Deputy Commissioner denied the credit and imposed a penalty. The Commissioner (Appeals) upheld the denial of credit, citing discrepancies in the quantity mentioned in the bill of lading and the country of origin. The appellants obtained an attested copy of the original bill of entry from Mumbai Customs House, which reflected the correct quantity of 21,150 M.T. The denial of credit was primarily due to the loss of the triplicate copy of the bill of entry. However, the Central Excise Rules allowed for contingencies in case of lost duty paying documents. The appellants had received the goods in their factory, and the description of goods matched the bill of entry. Therefore, the duty payment based on the customs attested copy of the original bill of entry was deemed acceptable.

Conclusion:
The judge held that the appeal deserved to be allowed, and accordingly, the appeal was allowed with any consequential relief for the appellants. The decision was based on the acceptance of duty payment supported by the customs attested copy of the original bill of entry, resolving the Modvat credit dispute in favor of the appellants.