2003 (11) TMI 233 - AT - Central Excise

Summary

Issues:
1. Denial of Modvat credit on duty paid inputs due to certain reasons.
2. Dispute regarding the classification of wires and cables as inputs.
3. Denial of credit on invoices with handwritten serial numbers.

Analysis:
1. The first issue pertains to the denial of Modvat credit on duty paid inputs due to specific reasons. The Commissioner denied credit based on the absence of particular information on invoices intended for transporters. However, the appellant argued that there is no rule mandating such information to be printed. The Tribunal, referring to Rule 57GG, emphasized that marking the invoices with necessary details by rubber stamp constitutes valid marking. Citing a previous judgment, the Tribunal ruled in favor of the appellant, allowing credit on this ground.

2. The second issue involves the classification of wires and cables as inputs for claiming credit. The Tribunal applied the precedent set by a judgment in CCE v. Jawahar Mills, 2001, which considered wires and cables to be inputs. Consequently, the Tribunal upheld that wires and cables should be deemed as inputs, thereby allowing credit on these items.

3. The third issue concerns the denial of credit on invoices with handwritten serial numbers. The Tribunal referenced a decision by the Larger Bench in CCE v. Satyan Dyeing, 2001, which stated that credit cannot be denied if the proper officer confirms the duty payment, receipt, and legitimate use of goods. The appellant agreed to demonstrate compliance with these conditions to the adjudicating authority. The Tribunal ruled that if the requirements are met, credit should be allowed; otherwise, it would be denied. The matter concerning invoices with handwritten serial numbers was remanded to the adjudicating authority for further examination.

In conclusion, the Tribunal set aside the impugned order and allowed the appeal regarding goods covered in the first two paragraphs. The matter related to invoices with handwritten serial numbers was remanded for additional scrutiny by the adjudicating authority to determine credit eligibility based on the specified criteria.