2007 (1) TMI 436 - AT - Central Excise

Summary

Issues:
1. Denial of credit of Rs. 2,21,974/- on the ground of invoice type.
2. Denial of credit of Rs. 3,01,423/- based on challans without challenge before Commissioner (Appeals).

Analysis:
The appellant appealed against the denial of credit of Rs. 2,21,974/- and Rs. 3,01,423/-. The denial of credit of Rs. 2,21,794/- was due to the invoices being marked as customers' copies instead of the valid transporter's copy for Modvat purposes. The credit of Rs. 3,01,423/- was denied as it was availed based on challans, and since this denial was not contested before the Commissioner (Appeals), challenging it before the Tribunal was deemed not maintainable, resulting in the dismissal of the appeal concerning this credit.

Regarding the credit of Rs. 2,21,974/-, it was denied because the invoice was marked as the customer's copy. However, it was noted that Rule 57G had been amended to allow credit if all particulars were mentioned in the duty paying documents, with this amendment applicable to pending cases as well. The Revenue did not dispute the duty payment on the inputs used in manufacturing the final product. Considering the introduction of the invoice system in March 1994, and the fact that the disputed period was in 1994, the denial of credit was set aside. The appeal was allowed, and the order denying the credit of Rs. 2,21,974/- was overturned, leading to the disposal of the appeal in favor of the appellant.

The judgment was pronounced on 2-2-2006 by Shri S.S. Kang, J.