TMI Blog1993 (11) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... the Collector (Appeals). (3) Appeal No. E/3223/91-NRB against the order in appeal dated 18-6-1990 passed by the Collector Central Excise (Appeals) and (4) Appeal No. E/3224/91-NRB, dated 30-6-1990 filed against the order passed by the Collector Central Excise (Appeals). 2.Briefly stated the facts of the cases are that the appellants manufacture bare Copper Wires under sub-heading No. 7408.19. In the manufacture of the Bare Copper Wires the appellants use duty paid inputs namely, Copper Wire Bars received from M/s. Hindustan Copper Limited, a Public Sector Undertaking. These inputs are received accompanied by documents viz Sale invoice/challans and certificates signed by M/s. Hindustan Copper Ltd. showing the payment of excise duty of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the same Collectorate other Divisions are accepting challans and certificates issued by the H.C.L. as duty paying document; that it is well settled that the benefit of the Modvat credit cannot be denied for mere technicality particularly when payment of duty on inputs at a particular rate and use thereof in the manufacture of final products is not in doubt. In support of his contention that in the same Collectorate other Divisions were accepting similar certificates issued by H.C.L. and therefore non-acceptance of such certificates in the appellants case is discriminatory, the ld. Advocate relied for this contention on the judgment of the Tribunal in the case of G.K.W. Ltd. v. Collector of Central Excise reported in 1985 (22) E.L.T 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l that they have stated is that there has been a violation of procedural requirements in delaying submitting D-3 document by a few hours and further that the goods were not available for verification. It would be understandable if the department, on this ground, were to consider warning the respondents or imposing any penalties for violation of procedures. To dis-allow credit of duty already paid even on satisfaction that such duty paid goods have been duly received and further consumed in the production of goods, which on clearance would be charged to duty, amounts to taking the stand that, on account of some default in following the procedural requirement the department would collect duty at both ends. This stand is not supportable. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y taken to mean that the said Rule contemplates receipt of inputs straight from the factory of manufacturer under gate pass. In that case, the consignee is necessarily to be the Modvat claimant and consignor being the manufacturer of inputs. However, when this requirement created some difficulties in the case of Small Scale units to obtain the inputs through intermediaries the Board appears to have made relaxation to this requirement by permitting one endorsement in the gate pass initially and subsequently based on the representations permitting up to two endorsements in the gate passes. This relaxation made by the Board appears to be purely of administrative nature based on considerations of implementing the Modvat scheme, so long as the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso on the question whether gate pass has been utilised for availment of Modvat credit at the earliest stages. In this case, no such inquiry appears to have been conducted and the Modvat credit has been denied only on the ground that more than that of permitted endorsements have been made in the gate passes. Such an order cannot be sustainable in the context of the scheme of Modvat credit read along with the relaxation made by the Board. We, therefore, set aside the order passed by the authorities below and permit availment of credit. While doing so, we allow the liberty to the Asstt. Collector to cause any inquiry or investigation to satisfy himself about the genuine nature of the gate passes and also about non-utilisation of the gate pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be taken unless the inputs are received in the factory under the cover of a Gate Pass, an AR 1, a Bill of Entry or any other document as may be prescribed by the Central Board of Excise Customs constituted under Central Board of Revenues Act, 1963, in this behalf, evidencing the payment of duty on such inputs. I also find that the Central Board of Excise Customs by their letter No. 267/17/88-CX. B, dated 9-2-1988 clarified `Trade is aware that the facility to avail credit under Rule 57A is available on the basis of the certificates issued by the Public Sector Undertakings/Canalising Agencies like MMTC/STC by treating such certificates as duty paying documents. It is not the case of the Department that this letter is not relevant to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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