2002 (2) TMI 990 - AT - Central Excise

Appellate Tribunal allows Modvat credit without pre-authenticated invoices. Non-authentication deemed curable.

The Appellate Tribunal CEGAT, New Delhi held that Modvat credit can be claimed without pre-authenticated invoices. The Tribunal deemed non-authentication ... Modvat credit - pre-authenticated invoices - authentication as curable defect - duty paying documents - availability of credit on supplier's invoicesModvat credit - pre-authenticated invoices - authentication as curable defect - Whether Modvat credit can be availed on the basis of invoices that were not pre-authenticated and whether non-authentication is a curable defect. - HELD THAT: - The Tribunal noted that the Modvat credit was claimed on invoices issued by dealers registered under the relevant rules and that the Department did not dispute receipt of the goods or that the goods were duty-paid. While Rule 57G(2) read with Rule 57GG(7) requires authentication of invoices, the Tribunal accepted the view that non-authentication of an invoice is a curable defect which can be rectified by the supplier. The Commissioner (Appeals) had allowed the respondents' appeal following earlier Tribunal decisions treating authentication defects as curable. Applying that reasoning, the Tribunal held that absence of pre-authentication did not disentitle the assessee to Modvat credit where the goods were received and duty-paid, and the defect could be remedied by obtaining proper authentication from the supplier. [Paras 4]Modvat credit held admissible despite invoices not being pre-authenticated; non-authentication is a curable defect and the Revenue's appeal is rejected.Final Conclusion: The appeal by the Revenue is dismissed: the assessee was entitled to claim Modvat credit on the impugned invoices notwithstanding their non-authentication, because the defect was curable and there was no dispute as to receipt of duty-paid goods. The Appellate Tribunal CEGAT, New Delhi ruled that Modvat credit can be availed even if invoices are not pre-authenticated. The Tribunal held that non-authentication of invoices is a curable defect and the Modvat credit can be obtained from the supplier of the goods. The appeal filed by the Revenue was rejected, and the respondents were deemed eligible to avail of the Modvat credit.