2000 (9) TMI 472 - AT - Central Excise

Tribunal Waives Duty Pre-Deposit, Emphasizes Documentation

The Appellate Tribunal granted a waiver of pre-deposit of duty in the amount of Rs. 76,472.08 and proceeded with the final hearing despite the initial ... Adjudication Issues:1. Waiver of pre-deposit of duty.2. Modvat scheme operation - failure to make entries in RG 23A Part I register.3. Commissioner (Appeals) reversing lower order due to lack of verification on actual use of inputs in final product.Analysis:1. The case involved a waiver of pre-deposit of duty amounting to Rs. 76,472.08, with the appeal taken up for final hearing despite being initially posted for a stay application. The Appellate Tribunal granted the waiver and proceeded with the final hearing.2. Under the Modvat scheme, the appellants failed to make entries in the RG 23A Part I register despite showing credit of duty paid inputs in the Part II register upon receiving certain goods. The Assistant Commissioner, noting the physical receipt of goods and lack of malafides, dropped the demand for denial of Modvat credit. However, the Commissioner (Appeals) reversed this decision, emphasizing the statutory requirement of verifying the actual use of inputs in the manufacture of the final product. The Commissioner (Appeals) found the lack of verification on this aspect in the lower order, highlighting the importance of proper documentation and accounting for actual use in statutory stock books.3. The Appellate Tribunal emphasized that unless there are motives attributed to the Assistant Commissioner, his findings on facts regarding the physical receipt of inputs should not be questioned. It was noted that there was no evidence of fraudulent entries or non-receipt of inputs by the assessee, leading to the conclusion that there was no basis to challenge the Assistant Commissioner's factual findings. Consequently, the appeal was allowed with consequential relief granted to the appellant.