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2015 (3) TMI 1089 - CESTAT MUMBAI

2015 (3) TMI 1089 - CESTAT MUMBAI - TMI - Disallowance of MODVAT Credit - appellant has availed credit in RG 23A Part-II on the basis of subsidiary GP-1 (gate pass) at a date prior to the issue of said subsidiary GP-1 - Held that:- Subsidiary GP-1 were issued on 23.02.1992, 03.03.1992 and 03.04.1992 and the credit there against was taken in RG 23A Part-II on 14.03.1992, 18.03.1992 and 18.04.1992 respectively. Therefore the allegation of the Revenue is apparently wrong on the face of the record. .....

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ng 74.08. As per the Board Notification No. 342/1/88-TRU MF(DR) dated 12.07.1990 the deemed credit was allowed in respect of copper waste and scrap falling under chapter heading No. 74.04 only. In view of this the deemed credit of MODVAT cannot be allowed on the goods namely copper wire falling under 74.08; therefore I uphold the denial of MODVAT credit.

Even if GP-1 was not endorsed in favour of the appellant but if input covered under the said GP-1 was received in the factory, accou .....

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adjudicating authority to decide a fresh the eligibility of MODVAT credit.

Appellant in RG 23A part-II but no accounting of the material have been made in RG 23A Part-I, I am of the view that this is only technical lapse. The lower authorities have not disputed the receipt of the input and use thereafter in the manufacture of final product. The entry in RG 23 A Part-1 is only to show the receipt of input but if the receipt is otherwise not under dispute, merely because entry was not m .....

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ter date, cannot be considered as a duty paying document in respect of input cleared from the supplier and received by the appellant prior to the date of GP-1 - Appeal disposed of. - Appeal No. E/619/11 - Dated:- 10-3-2015 - Mr. Ramesh Nair, Member (Judicial) For the Petitioner : Shri Nikhil Kr. Rungta, Advocate For the Respondent : Shri V.K. Shastri, Assistant Commissioner (A.R.) ORDER Per: Ramesh Nair The appeal is directed against Order-in-Appeal No. PKS/500/BEL/2010 dated 19.01.2011 passed b .....

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ken on the basis of certified photocopy of subsidiary GP-1s. (C) Credit amount of ₹ 31,087.30 was availed as deemed credit on copper wire falling under chapter heading 74.08, whereas as per Boards vide MF(DR) letter F. No. 342/1/88-TRU dated 12.07.1990 it was allowed to take deemed credit on copper waste and scrap falling under chapter subheading No. 74.04 only. (D)The credit amount of ₹ 2,54,805.77 on GP-1 which was neither in the name of the appellant nor endorsed in their favour. .....

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Order-in-Original and rejected the appeal filed by the appellant, therefore the appellant is before me. 3. Shri Nikhil Kr. Rungta, learned Counsel for the appellant submits that:- A. As regard Credit amount of ₹ 56,874.87 the same was availed on the certificate issued in lieu of GP-1 issued under Section 57 G of the Central Excise Rules, 1944. It is his submission that the certificate was issued on 23.02.1992, 03.03.1992, 03.04.1992 and the credit was taken on 14.03.1992, 18.03.1992, 18.04 .....

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erefore the same is admissible, in this support, he relied upon the judgment in the case of Bombay Goods Transport Association Vs. Union of India, 1995 (77) ELT 521 (Bom.), Eveready Industries India Ltd. Vs. CCE, Allahabad 1996 (87) ELT 137 (T). (C) As regard credit amount of ₹ 31,087.30 taken as deemed credit on copper wire, he submits that they placed order to the supplier for copper waste and scrap which falls under chapter heading 74.04 only, however the supplier cleared the goods as c .....

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appellant, accounted for them in their books and payment of purchase was also made by the appellant to the supplier. He submits that endorsement on the gate pass not mandatory because no special condition was imposed in Rule 57G. In this support he relied upon the judgment in the case of Collector of Central Excise, Bombay Vs. Goodlass Nerolac Paints Ltd. - 1986 (26) ELT 57 (Tribunal), S.B.S. Organics Pvt. Ltd. Vs. 1999 (45) ELT 701 (Tribunal) and Maschmeijer Aromatics (I) Ltd. Vs. Collector of .....

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e receipt of input in the factory. There is no dispute in the fact that the input was received in the appellant s factory and the same was used. (F) As regard the credit amount of ₹ 13,823/- which was taken in respect of material entered in RG 23A part-I at a date prior to the date of issue of GP-1, he submits that the MODVAT credit was taken only after receipt of duty paying document. He relied on the Board letter No. B-21/4/87-TRU dated 15.04.1987 wherein it was clarified that the inputs .....

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red to allow the credit of duty paid on input/capital goods ignoring minor procedural lapses in filing the declaration or in the invoice/document based on which credit is to be taken. However the Assistant Commissioners should ensure that inputs/capital goods have suffered duty and are being used in the process of manufacture. It is his submission that in view of this Circular all the procedural infraction on the basis of which credit was denied in the present case should be relaxed/condoned and .....

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s of subsidiary GP-1 at a date prior to the issue of said subsidiary GP-1. I find that the subsidiary GP-1 were issued on 23.02.1992, 03.03.1992 and 03.04.1992 and the credit there against was taken in RG 23A Part-II on 14.03.1992, 18.03.1992 and 18.04.1992 respectively. Therefore the allegation of the Revenue is apparently wrong on the face of the record. Therefore the credit amount of ₹ 56,874.87/- is allowed. (ii) As regard the credit amount of ₹ 11,880/- availed by the appellant .....

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he invoice it was observed that the supplier has sold the material to the appellant under description of cable (copper wire) GR-8647 and under chapter heading 74.08 From the said description it is clear that even though the appellant treated the said copper material as waste & scrap, but the supplier has sold the material as copper wire which is classifiable under chapter heading 74.08. As per the Board Notification No. 342/1/88-TRU MF(DR) dated 12.07.1990 the deemed credit was allowed in .....

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dorsed in favour of the appellant but if input covered under the said GP-1 was received in the factory, account for the same in records, purchases were booked in the name of the appellant and payment their against was made by the appellant these are satisfactory evidences to established that the inputs covered under the said unendorsed GP-I were received by the appellant and used in the manufacture. However from the proceeding it is observed that such examination were not carried out, therefore .....

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