2001 (12) TMI 613 - AT - Central Excise

Tribunal Grants Modvat Credit for Pre-Registration Invoices

The Tribunal allowed the appeal, granting Modvat credit to the appellant. It held that the invoices contained essential particulars and were supplemented ... Modvat/Cenvat Issues:Appeal against denial of Modvat credit due to incomplete invoices and unregistered dealer.Analysis:The appellant, engaged in manufacturing electrical goods, faced denial of Modvat credit due to incomplete invoices lacking specific details and not issued by registered dealers. The Department issued a show cause notice, alleging non-compliance with Rule 57G. The Deputy Commissioner confirmed the demand and imposed a penalty, which the Commissioner (Appeals) upheld, citing the invalidity of the invoices. The appellant contended that the invoices contained essential particulars and were supplemented by the supplier's invoice, pre-registration mandate not being applicable. The Counsel argued that since the necessary details were provided, Modvat credit should be granted.The Counsel highlighted that the invoices in question pertained to a period before dealer registration was mandatory, emphasizing the validity of the information provided in the invoices. The Department, represented by the SDR, reiterated the lower authorities' findings. Upon review, the Tribunal noted that essential particulars were indeed furnished, and supplementary information from the earlier manufacturer was also provided in some instances. Acknowledging the receipt, duty payment, and utilization of inputs in the final product, the Tribunal deemed the Modvat credit admissible.The Tribunal further observed that since the invoices related to a period prior to the registration mandate's enforcement, the requirement did not apply to the appellant's case. Consequently, the Tribunal set aside the impugned order, allowing the appeal and potentially granting consequential relief as per legal provisions.