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2019 (7) TMI 1463 - AT - Central ExciseMODVAT/CENVAT Credit - credit denied on the basis of supplier’s private register - credit denied alleging short receipt of inputs vis-à-vis figures shown in invoices evidenced by so called private register of M/s Vinayak Metal & Chemicals - credit denied alleging non-entry of receipt of goods on the basis of appellant’s gate register. Maintenance of Gate Register - HELD THAT:- It is not a statutory register and is being maintained by the Guard at the Gate. The Guards were mostly illiterate and they record the details in a very casual manner and sometimes do not record at all. It is further observed that the allegation raised by the Department regarding availment of modvat credit of ₹ 91,917/- is on the basis of investigation of the third party documents - further Department had seized all the documents evidencing to receive the materials at the factory premises of the appellant and there is no dispute regarding genuineness of all the documents and accordingly, it cannot be held that the modat credit has wrongly been availed. Short receipt of materials - allegation based on gate register maintained at the gate of the factory premises of the appellant by the security guard - HELD THAT:- It is observed that the security guard of the Company are not educated and during change of shift etc., there is every possibility of any entering the details in the gate register. Further, all the documents evidencing the receipt of materials, such as, transport receipt, bills, challans etc. of materials, were available with the appellants and most of these documents were already seized by the Department. Thus, the denial of benefit of modvat credit merely on the basis of non-recording of entries in the so-called gate register maintained by the security guard at the gate, is not justifiable. Department has not pointed out any instance of non-receipt of materials, non-uses of materials for final production or manufacture and has not disputed the documents supporting the receipt of materials. Since the gate register is not a prescribed document in terms of Cenvat Credit Rules, 2004 and the purposes of which is only to show the receipt of the materials at the factory gate, it cannot be held to be a conclusive evidence so as to arrive at the finding of the non-receipt of the goods - Further, when the goods have been entered in the statutory records, modvat credit cannot be denied. When the details of inputs stand entered into the statutory register, non-entry of the same in the private record maintained by the third party, will not dis-entitle the appellant assessee to avail credit, specially, when there is no allegation or evidence showing non-receipt of such inputs. Appeal allowed - decided in favor of appellant.
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