2003 (5) TMI 67 - HC - Central Excise

High Court affirms Modvat credit allowance based on manufacturer's stamp on invoices

The High Court upheld the Tribunal's decision in a case involving the interpretation and validity of Modvat credit availed based on invoices. The Court ... Cenvat/Modvat - Duty paying documents Issues:1. Interpretation of Modvat credit availed based on invoice particulars.2. Validity of Modvat credit based on extra copies of invoices.Analysis:1. The petitioner, engaged in manufacturing excisable goods, availed Modvat credit under the Central Excise Act, 1944. Following a notice and subsequent proceedings, the authority disallowed a portion of the credit, imposing a penalty. The Tribunal, however, overturned this decision, allowing the credit based on invoices from a wholesale dealer/distributor. The Tribunal emphasized that the stamp on the manufacturer's invoices confirmed duty discharge for raw materials. Despite arguments against relying on a certificate from the Steel Authority of India Limited due to lack of endorsed original invoices, the High Court upheld the Tribunal's decision. The Court noted that the certificate indicated duty payment by the manufacturer, which had been overlooked by lower authorities. It was established that the inputs were used in manufacturing final products, justifying the Modvat credit availed.2. The second issue pertained to the validity of Modvat credit claimed using extra copies of invoices. The adjudicating authority had disallowed a significant credit amount for this reason. However, the Tribunal, considering a certificate from the Steel Authority of India Limited, reinstated this credit. The Tribunal highlighted that the inputs were duly duty paid, as certified, despite the absence of endorsed original invoices. The High Court concurred with the Tribunal's decision, emphasizing the genuineness of the manufacturer's stamp on the invoices supporting the Modvat credit claim. The Court held that the stamp served as valid documentation of duty payment by the manufacturer, warranting the allowance of the Modvat credit.In conclusion, the High Court dismissed the petition, determining that no legal questions necessitated its consideration. The Court affirmed the Tribunal's decisions regarding both issues, emphasizing the validity of the Modvat credit availed based on invoices and the reliance on the manufacturer's stamp as sufficient evidence of duty payment.