Invalid Invoice Leads to Duty Demand: Deposit Required, Waiver Pending Appeal

The Tribunal found that the applicant availed credit based on a triplicate copy of the invoice, which was deemed invalid for duty payment. As a result, the duty demand waiver was not granted. The Tribunal directed the applicant to deposit Rs.50,000 within six weeks, allowing waiver of the remaining duty and penalty with a stay on recovery pending the appeal's outcome. Compliance was required by a specified date.

---

---

Issues: Application for waiver of duty, denial of credit based on triplicate copy of invoice.

Analysis:
1. The issue in this case revolves around the application for waiver of duty amounting to 2,06,783/- along with interest and penalty of equal amount. The demand was confirmed after denying the credit on the basis that the applicant had availed credit using a triplicate copy of the invoice.

2. The applicant argued that they received goods under a copy of the invoice issued by the manufacturer, which was subsequently misplaced. They requested the triplicate copy on the basis of which the credit was taken. It was undisputed that duty payment was made on the inputs used in the manufacture of goods, which were then cleared after payment of duty. The Revenue contended that as per Rule 7 of Central Excise Rules, invoices were prepared with specific markings for original, duplicate for transporter, and triplicate for the manufacturer. The Revenue argued that the triplicate copy is meant for the manufacturer who supplied the invoices on the basis of which the applicant availed credit.

3. Considering the facts and circumstances of the case, it was observed that the applicant had indeed availed credit based on the triplicate copy of the invoice, which was not considered a valid duty paying document. Consequently, the appellant failed to establish a case for a total waiver of the duty demand. In light of this, the Tribunal directed the applicant to deposit Rs.50,000/- within six weeks. Upon this deposit, the pre-deposit of the remaining duty and penalty was waived, and recovery was stayed pending the appeal's disposal. Compliance was required to be reported by a specified date.

This detailed analysis highlights the key arguments presented by both parties, the legal provisions involved, and the Tribunal's decision regarding the waiver of duty demand based on the use of a triplicate copy of the invoice for availing credit.

---