TMI Blog1998 (11) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... t sent to the Superintendent. 2.1. Shri L.P. Ashtana, ld Advocate submitted that the Additional Commissioner had disallowed the Modvat credit amounting to Rs. 1,48,691.43 ps. holding that part consignment was issued by supplier to some other buyers for which subsidiary gate passes were issued; that as per laid down procedure gate passes could be endorsed in favour of the buyer for part consignment provided no subsidiary gate pass had been issued earlier; that it was obligatory on the part of the appellants to obtain subsidiary gate pass. On appeal, the Commissioner (Appeals) confirmed the order of the adjudicating authority holding that the prescribed procedure did not permit endorsement on a original gate pass under which subsidiary gate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aluminium Factory v. C.C.E. - 1994 (71) E.L.T. 76 (Tribunal) - 1994 (1) RLT 209 in which it was held that non-observation of procedural formalities will not disentitle the assessee from availing Modvat credit. He also relied upon the decision in the case of C.C.E. v. Multilayer Composites (P) Ltd., 1994 (69) E.L.T. 575 (Tribunal) wherein it was held that in respect of the goods covered by particular gate pass and the original gate passes in full or those after issue of subsidiary gate passes are endorsed in favour of the respondents, the fact that such sale to them is not in one lot but piecemeal and not direct but through their distributors would not come in the way of their eligibility to Modvat. He finally relied upon the decision in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and officers of the department are not physically present at the time of the receipt of the inputs. He referred to the judgment in the case of Indian Aluminium Co. Ltd. v. Thane Municipal Corporation, 1991 (55) E.L.T. 454 wherein the Supreme Court held that the failure to file the necessary declaration has necessarily prevented the authorities to have a proper verification and the verification at the time when raw material was still there is entirely different from a verification of some records. The learned SDR concluded by submitting that administrative efficiency has to be the criterion for determining the necessity of the procedure. In re-joinder, the learned Counsel mentioned that the Apex Court in the case of Mangalore Chemical Fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of inputs under the cover of gate passes which were endorsed in their favour. The department has objected to the availment of credit as the supplier had earlier issued subsidiary gate passes for the removal of part consignment and according to the procedure in such cases only subsidiary gate pass should have been issued. It has been the consistent view of the Tribunal that for procedural reasons the substantive benefit of Modvat credit should not be denied. The appellants had also produced certificate from the supplier as well as the ledger account to prove the supply of part consignment of goods. The inputs were received under the cover of original gate passes and this fact has not been controverted by the Department. In view of these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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