TMI Blog2017 (5) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty - the appellants succeed on the ground of limitation also. Appeal allowed - decided in favor of appellant. - E/3260/2012-SM - Final Order No. A/ 30444 / 2017 - Dated:- 28-3-2017 - Sulekha Beevi, C. S., Member (Judicial) Ms. A.S.K. Swetha, Advocate for the Appellant Shri Arun Kumar, Deputy Commissioner(AR) for the Respondent ORDER [ Order Per Sulekha Beevi, C. S. ] The above appeal is filed against the disallowance of CENVAT credit on inputs. 2. The appellants are manufacturers of Ferro alloys and are registered with the Central Excise department. They are availing the facilities of credit on inputs. They availed input credit to the tune of ₹ 16,18,888/- on molasses which was supplied to them by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, they were able to export only 3740.940 MTs. Imcola obtained no objection certificate from the Commissioner to clear the unexported quantity to the appellant. That thus, they had obtained permission to clear the goods in the domestic market on payment of duty. It is not disputed by department that the appellants had utilised the molasses in the manufacturing of their final product. Although the Department does not dispute the payment of duty and the utilisation of the inputs in the final products, the only objection raised is that the document on which credit availed is not proper. Appellants availed the credit in the month of September 2007 and the same was disclosed in their ER1 returns filed for the said month. Along with ER1 returns, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o prescribes the persons who can issue the documents. It is stated therein that an invoice issued by a manufacturers, importer, first stage dealer is admissible for availing credit. The appellant herein has availed credit on the documents like GR-7 challan issued by a merchant exporter. Rule 9 does not specify the invoice issued by a merchant exporter. Since merchant exporter is not registered with the Central Excise Department for issuing such an invoice, the credit is not admissible. 5. I have considered the submissions made by both sides. As rightly argued by the learned counsel for appellant, there is no dispute with regard to the duty paid on the inputs. So also there is no dispute with regard to use of the inputs in the final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object of input duty credit to a manufacturer should not be defeated on a technical and strict interpretation of the Rule governing Modvat. Further even though, debit notes are not prescribed documents under Rule 9 of CENVAT Credit Rules, the Tribunal as well as various High Courts have held that credit is admissible on documents such as debit notes. In Ad-Manum Packaging Pvt. Ltd. Vs. CCE, Indore [2017(346) ELT 142 (Tri. Del.)], the Tribunal held the credit availed on debit notes to be admissible. Therefore, the defects in the document on which credit is availed by appellant can be concluded to be a procedural irregularity and substantial benefit of CENVAT credit cannot be denied on account of this. 6. The appellant has contested on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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