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2004 (3) TMI 279 - AT - Central Excise
Issues:
Denial of deemed Modvat credit under Notification No. 58/97-C.E. based on manufacturer's duty discharge declaration. Analysis: The appeal before the Appellate Tribunal CESTAT, New Delhi involved the denial of deemed Modvat credit to the respondents under Notification No. 58/97-C.E. The Asstt. Commissioner disallowed the Modvat credit of Rs. 14,930/- availed by the respondents in July 1999 based on invoices from a manufacturer under the Compound Levy Scheme. The learned Commissioner (Appeals) had reversed the Asstt. Commissioner's decision, stating that the invoices carried the manufacturer's declaration of duty discharge. However, the Tribunal noted that while the first condition of receiving inputs directly from the manufacturer was met, the second condition of the manufacturer discharging appropriate duty was not satisfied. The Tribunal emphasized the difference between a declaration of "duty to be discharged" and "duty discharged," highlighting that the manufacturer's declaration on the invoices did not confirm duty discharge. The Tribunal found that the Commissioner (Appeals) had misinterpreted the declaration, leading to a miscarriage of justice. Consequently, the Tribunal set aside the Commissioner (Appeals) order and restored the original order, allowing the Revenue's appeal. In conclusion, the Tribunal's decision focused on the specific requirements under Notification No. 58/97-C.E. for claiming deemed Modvat credit. It clarified that while receiving inputs directly from the manufacturer fulfilled one condition, the crucial second condition of the manufacturer discharging duty was not met in this case. The Tribunal's analysis highlighted the importance of accurate interpretation of declarations on invoices and emphasized the need for compliance with all conditions for availing Modvat credit. The decision underscored the significance of meeting statutory requirements for claiming benefits under tax notifications, ultimately upholding the appeal of the Revenue in this matter.
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