2006 (8) TMI 463 - AT - Central Excise

Appellant Wins Modvat Credit Appeal Over Invoice Markings Issue

The Tribunal overturned the denial of Modvat credit to the appellant based on the absence of specific markings on invoices from a public sector ... Cenvat/Modvat - Duty paying documents Issues:- Denial of Modvat credit based on invoice markings.Analysis:The appeal was against an order denying Modvat credit to the appellant due to the absence of specific markings on invoices. The issue revolved around the appellant availing Modvat credit on invoices from a public sector undertaking, Steel Authority of India Limited, which did not bear the indication 'duplicate copy,' 'consignee copy,' or 'transporter copy.' The appellant had received and consumed the inputs covered by the disputed invoices. The Tribunal noted that the denial of Modvat credit solely based on the lack of specific markings on the invoices was incorrect. The appellant had relied on a Trade Notice clarifying that marking the invoice copy as 'Original' was sufficient for Modvat credit validity. The invoices from Steel Authority of India Limited also bore a stamp indicating their use for taking Modvat credit under Rule 57(G).The Tribunal found that the appellant had followed the guidance provided in the Trade Notice and the stamp on the invoices, indicating their eligibility for Modvat credit. As there was no dispute regarding the receipt, consumption of inputs, and duty payment, the denial of Modvat credit based on the absence of specific markings was deemed contrary to the law. Consequently, the impugned order denying Modvat credit was set aside, and the appeal was allowed with any consequential relief deemed appropriate.