1996 (1) TMI 246 - AT - Central Excise

CEGAT Tribunal: Modvat credit appeals remanded for reevaluation of evidence

The Appellate Tribunal CEGAT, BOMBAY reviewed appeals regarding the denial of Modvat credit due to missing trader invoices. Despite the initial absence of ... Modvat Issues involved: Denial of Modvat credit based on missing trader invoices and imposition of penalties.Summary:The Appellate Tribunal CEGAT, BOMBAY heard appeals against Order-in-Original No 44 & 45 of 1995 related to denial of Modvat credit based on invoices issued by manufacturers M/s. BPRL Assam and M/s. India Polyfibres Ltd. The department objected to the credit claiming the absence of trader invoices, despite subsequent submission of these invoices. The demands were confirmed, and penalties imposed.The appellants presented evidence including certificates from manufacturers, invoices, packing lists, transfer challans, and lorry receipts to establish the movement of goods from the factory to their premises. The Tribunal noted the evidence showed a clear correlation between the goods' movement and their receipt by the appellants, even though trader invoices were initially missing but later provided.Upon review, the Tribunal found the order was passed solely due to the absence of trader invoices, disregarding the substantial evidence provided. The case was remanded back to the Commissioner for reevaluation, with directions to consider all documents establishing the movement of goods and to extend Modvat credit if the correlation is established, even if trader invoices are produced subsequently.The appeals and stay applications were disposed of with the above observations and directions.