Modvat credit on job-work inputs allowed where Rule 57GG invoices showed duty particulars and transfer was not a sale.

Modvat credit was treated as admissible on inputs sent by a principal manufacturer to a job worker under Rule 57GG invoices, even though the transfer was not a sale. The Tribunal viewed such invoices as valid credit documents where duty particulars were shown and relied on its earlier approach that stock transfer to a job worker did not defeat credit entitlement. The statutory definition of sale under Section 2(h) of the Central Excise Act, 1944 was not applied to deny credit in this job-work arrangement, and the Revenue's challenge failed.

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Issues: Whether Modvat credit was admissible on inputs supplied to a job worker under invoices issued by the principal manufacturer under Rule 57GG of the Central Excise Rules, 1944, when the transfer was not a sale.

Analysis: The dispute turned on whether the invoices issued for stock transfer of inputs to the job worker could be treated as valid documents for credit. The Tribunal followed its earlier view that, where similar inputs were supplied to a job worker by the principal manufacturer under Rule 57GG invoices and duty particulars were shown, the transfer was sufficient for availment of credit. The definition of sale under Section 2(h) of the Central Excise Act, 1944 was treated as not defeating credit in such a job-work arrangement.

Conclusion: Modvat credit was held to be rightly availed, and the Revenue's challenge failed.

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