TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellate Tribunal Upholds Modvat Credit for Depot Receiving Goods</h1> The Appellate Tribunal CEGAT, Mumbai upheld the decision of the Commissioner (Appeals) regarding Modvat credit entitlement for a depot receiving goods ... Modvat - Duty paying document Issues: Interpretation of Rule 57G(2A) regarding Modvat credit for depot receiving goods under Rule 52A, applicability of Board's Circular dated 18-7-1995, and consideration of genuine documents for Modvat credit entitlement.In this case, the Appellate Tribunal CEGAT, Mumbai addressed the issue of whether a depot receiving goods under Rule 52A is entitled to Modvat credit based on the original invoice when the duplicate is lost in transit. The Assistant Commissioner initially denied the credit, citing Rule 57G(2A), which allows credit for manufacturers only. However, the Commissioner (Appeals) overturned this decision, relying on the Board's Circular dated 18-7-1995, which permits credit based on the original invoice in case of duplicate loss. The Respondents argued for the applicability of the Circular and referenced a Bombay High Court decision supporting the allowance of Modvat credit with genuine documents. The Tribunal analyzed the provisions of Rule 57G(2A) and the Board Circular, emphasizing the importance of proper scrutiny by the Assistant Commissioner in such cases. The Tribunal noted that the Respondents, being a manufacturer's depot, had valid documents and maintained modvat registers, making them eligible for credit. The Tribunal upheld the Commissioner (Appeals) decision, emphasizing the beneficial nature of Modvat credit legislation and rejecting a strict interpretation that would defeat the purpose of providing input duty relief to manufacturers. Consequently, the appeal by the Commissioner of Central Excise, Surat was dismissed.This judgment clarifies the interpretation of Rule 57G(2A) in the context of Modvat credit eligibility for depots under Rule 52A, highlighting the significance of the Board's Circular and the need for a practical approach in granting credit. The Tribunal's decision underscores the importance of considering genuine documents and the specific circumstances of each case to ensure the objectives of the Modvat credit scheme are met without overly technical constraints.
TaxTMI 
TaxTMI 
