1997 (8) TMI 314 - AT - Central Excise

Tribunal allows Modvat credit from unregistered dealer despite registration deadline, affirms lower authority ruling

The Tribunal held that Modvat credit for goods received under invoices from an unregistered dealer was allowable, despite the dealer's lack of ... Modvat - Duty paying documents Issues:Grant of Modvat credit for goods received under invoice from unregistered dealer.Analysis:The appeal concerned the grant of Modvat credit for goods received under invoices from a dealer not registered with excise authorities. The lower appellate authority allowed the appeal, stating that the invoices issued by the dealer contained necessary particulars as per relevant notifications. The appellant claimed credit under specific notifications valid until 31-12-1994. The Revenue contended that Modvat credit should not have been allowed as the dealer was unregistered, citing Rule 57GG requirements. The Tribunal noted the confusion during the transition from gate pass to invoice system, with various clarifications and relaxations issued by the Government. The Tribunal emphasized that the relaxation allowed dealers to register until 31-12-1994. The issue was whether invoices issued by unregistered dealers before 31-12-1994 could be accepted for Modvat purposes. The Tribunal held that the lack of registration by 31-12-1994 should only affect invoices issued after that date. Considering the confusion and clarifications at the time, the Tribunal upheld the lower authority's decision, stating that the invoices contained necessary particulars as per relevant notifications. Consequently, the Tribunal held that Modvat credit was available in similar circumstances and dismissed the Revenue's appeal.