2000 (11) TMI 868 - AT - Central Excise

CEGAT Chennai Upholds Commissioner's Order on Modvat Credit, Rejects Revenue's Reference Application

The Appellate Tribunal CEGAT, Chennai rejected Revenue's reference application on modvat credit and inputs on capital goods, upholding the Commissioner ... Modvat credit on capital goods - reference under Section 35G(1) of Central Excise Act, 1944 - question of law for reference - merger of Commissioner (Appeals) order with Tribunal order - issue no longer res integra - reliance on precedentReference under Section 35G(1) of Central Excise Act, 1944 - question of law for reference - merger of Commissioner (Appeals) order with Tribunal order - Reference application under Section 35G(1) challenging the Tribunal's failure to advert to specific grounds of appeal is without merit and is liable to be rejected. - HELD THAT: - The Tribunal's order was examined in the context of whether it failed to deal with the specific grounds of appeal so as to raise a question of law fit for reference under Section 35G(1). The Commissioner (Appeals) had earlier given detailed findings which the Tribunal effectively upheld; the appellate reasoning was treated as merged into the Tribunal's order. The Tribunal also referred to earlier authoritative decisions, showing the issue was not open or novel before it. In these circumstances the Court concluded that no substantial question of law for reference was made out and that a mere assertion that the Tribunal did not separately rehearse each ground does not convert the matter into a referable question of law.Reference application under Section 35G(1) rejected; no question of law made out for reference.Modvat credit on capital goods - reliance on precedent - issue no longer res integra - technical violations - Grant of modvat credit in respect of capital goods (on the basis of original documents where duplicate was lost) was rightly upheld by Commissioner (Appeals) and confirmed by the Tribunal. - HELD THAT: - The Commissioner (Appeals) found that the assessee had furnished a detailed declaration and maintained registers and original invoice particulars supporting claim of modvat credit for final goods. Revenue's contention that credit could not be allowed on the basis of originals where duplicates were lost was negatived in view of earlier decisions relied upon by the Commissioner and referred to by the Tribunal. The Commissioner also considered surrounding circumstances and documentary evidence showing installation and compliance with modvat rules, treating the alleged breaches as technical. The Tribunal, by referring to relevant precedents, confirmed these conclusions, demonstrating that the question was not res integra.Modvat credit on capital goods upheld; Tribunal's confirmation of the Commissioner (Appeals) view sustained.Final Conclusion: The reference application by Revenue under Section 35G(1) is dismissed; the Tribunal's confirmation of the Commissioner (Appeals) finding upholding modvat credit on capital goods is sustained and no question of law for High Court reference arises. The Appellate Tribunal CEGAT, Chennai rejected a reference application by Revenue regarding modvat credit and inputs on capital goods. The Tribunal upheld the Commissioner (Appeals) order based on previous judgments, stating no need for a different view. The application was rejected as the issue was no longer res integra, and the questions raised were not considered as questions of law.