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TMI Blog1996 (6) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... n denied for the reason that in terms of Rule 57G read with Notification No. 16/94, dated 30-3-94 the GP issued could not be accepted as valid document for the purpose of taking Modvat credit after 30-6-94. 2. The matter had come up earlier for hearing. Since the issue involved related to interpretation of notification issued under Rule 57G, it was felt that the matter should be heard by a two Member Bench. The matter has therefore been taken up today. 3. The learned Counsel has pleaded that prior to 1-3-94 the GP was mentioned as a valid document under which the Modvat credit could be taken. But from that date Rule 57G was amended and in respect of the GP invoice was prescribed as the valid document for the purpose. He pleaded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken to be valid for taking Modvat credit upto 30-6-94 is arbitrary and unreasonable and once it is held that the GPs could be considered as valid document even after the change in the procedure under which invoice is prescribed as legal document for Modvat purposes no cut off date should have been fixed for the purpose of taking Modvat credit and the Modvat credit should have been allowed in respect of all clearances made on a GP irrespective of the time the inputs were received in the appellants factory. The learned Counsel in support of his plea has referred to the judgment of the Hon'ble Supreme Court in the case of Sales Tax Officer v. K.I. Abraham reported in AIR 1967 S.C. 1823. His plea is that while the Govt. had a right to prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration is to be filed by the registered dealer. The view that we have taken is supported by the language of S. 13(4)(g) of the Act which states that the State Government may make rules for "the time within which, the manner in which and the authorities to whom any change in the ownership of any business or in the name, place or nature of any business carried on by any dealer shall be furnished." This makes it clear that the Legislature was conscious of the fact that the expression "in the manner" would denote only the mode in which an act was to be done, and if any time-limit was to be prescribed for the doing of the act, specific words such as "the time within which" were also necessary to be put in the statute. In Stroud's Judicial Dictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion or unless judgment shall have been signed or execution issued thereon within the same period, such warrant of attorney and the judgment and execution thereon, shall be deemed fraudulent and void against the assignees. As already stated, judgment had been signed on March 11, 1850, i.e., within twentyone days of the execution of the warrant of attorney, and it was contended on behalf of the defendant that the judgment was valid notwithstanding the failure to file the affidavit as required by Section 1 of Stat. 3 G. 4, c. 39. The argument was rejected and it was held by the Queen's Bench that the warrant of attorney and the judgment thereon were void as against the assignees in bankruptcy. In the course of his judgment, Lord Campbell C. J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Employees' State Insurance Corporation. He pleaded that Rule 57G does not clothe the authorities to fix any time limit for the purpose of existence of the documents. 4. The learned DR pleaded that there was a change in the statute and instead of GP invoice was prescribed as the legal document for clearance of the goods from the factory and therefore the same document was prescribed for the purpose of taking Modvat credit under Rule 57G. He pleaded that after that date under the statute invoice alone has been prescribed as the legal document for the purpose. 5. We have given a careful thought to the pleas made by both the sides. We observe that the main provisions under which Modvat credit has been allowed is only Rule 57A and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o evidence of payment of duty. GP was one of the documents prescribed under Rule 57A under which the goods were cleared from a factory after discharge of duty liability. With the purpose of simplifying the procedure, amendment in law was made dispensing with the filing of price lists and also requirements of issue of GPs and a combined document for the two in the nature of invoice has been prescribed and the invoice has become the document evidencing the price which forms the basis of assessable value for payment of duty and also evidence of payment of duty in lieu of GP. The goods however which were cleared under GPs earlier were the goods which moved under the cover of a legal document evidencing payment of duty. There is no mention in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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