TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal affirms denial of Modvat credit due to non-compliance with Circular guidelines</h1> <h3>TRIDENT ALCO-CHEM LIMITED Versus COMMISSIONER OF C. EX., CHANDIGARH</h3> The Tribunal upheld the decision of the Commissioner (Appeals) in disallowing Modvat credit for goods not received by the appellants, emphasizing ... Modvat/Cenvat - Transit sale Issues:Modvat credit availed on invoices not received by registered dealers under Rule 57GG of Central Excise Rules, 1944.Applicability of Circular No. 107/18/95-CX and Circular No. 96/7/95-CX regarding Modvat credit in transit sales.Validity of Modvat credit availed by the appellants for goods not brought to their premises.Issue 1: Modvat credit availed on invoices not received by registered dealers under Rule 57GG of Central Excise Rules, 1944.The appellants manufactured various goods and availed Modvat credit based on invoices from registered dealers for molasses. The Deputy Commissioner disallowed the credit citing Circular No. 107/18/95-CX, stating that Modvat invoices cannot be issued until goods are received by the dealers. The Commissioner (Appeals) upheld this decision, leading to the current appeal.Issue 2: Applicability of Circular No. 107/18/95-CX and Circular No. 96/7/95-CX regarding Modvat credit in transit sales.The appellant's counsel referred to Circular No. 96/7/95-CX, arguing for Modvat credit in transit sales where goods are sent directly to a job worker. However, the Tribunal found this circular inapplicable as it pertains to direct supply to end-users, not job workers. The invoices did not mention the appellants or the registered dealers as per the circular requirements, leading to the dismissal of this argument.Issue 3: Validity of Modvat credit availed by the appellants for goods not brought to their premises.The Tribunal noted that the molasses were sent to a job worker for conversion, not directly to the appellants as end-users. The invoices did not comply with Circular No. 96/7/95-CX requirements, lacking details of consignee and registered person's instructions. As a result, the Tribunal upheld the Commissioner (Appeals) decision, dismissing the appeal due to lack of merit.This judgment clarifies the limitations of Modvat credit under specific circumstances, emphasizing the importance of compliance with circular instructions for availing such credits.
TaxTMI 
TaxTMI 
