Appeal Allowed: Credit Not Denied on Procedural Grounds

The appellants' appeal was allowed, and the impugned order was set aside. The Tribunal emphasized that credit should not be denied on procedural/technical grounds when there is no dispute over the duty paid nature of goods and their receipt by the appellants. Following the principles outlined in the Kamakhya Steel case, the appeals were allowed with consequential relief as per law, mirroring a previous Tribunal decision on a similar issue.

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Issues:
Appeal arising from denial of Modvat credit and imposition of penalties based on common Order-in-appeal dated 30-9-2004.

Analysis:
The appellants availed Cenvat credit based on invoices from a dealer, who stored goods outside the godown during a central excise officers' visit. The Commissioner (Appeals) disposed of 4 appeals, including one decided by the Tribunal earlier. The Tribunal's previous decision highlighted that credit cannot be disallowed to appellants who purchased goods with duty paid invoices, despite the dealer storing goods at unauthorized premises. Citing the Kamakhya Steel case, the Tribunal emphasized that credit should not be denied on procedural/technical grounds when there is no dispute over the duty paid nature of goods and their receipt by the appellants. Consequently, the impugned order was set aside, and the appellants' appeal was allowed with consequential relief as per law.

After considering the arguments presented by the learned D.R. and reviewing the record, it was found that the issue in the present appeals mirrored the one addressed in the previous Tribunal decision. Following the precedent set by the Tribunal and the principles outlined in the Kamakhya Steel case, the appeals filed by the appellants were allowed with consequential relief, if applicable. The judgment was dictated and pronounced in an open court setting.

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