1992 (7) TMI 210

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.... [Order per : S. Kalyanam, Member (J)]. - This appeal is filed by the Department against the order of the Collector of Central Excise (Appeals), Madras dated 2-8-1989 allowing Modvat credit availed by the Respondent on Aluminium sheets for a sum of Rs. 30,444.63. 2. Shri J.M. Jeyaseelan, the learned D.R. contended that the goods were not meant for the Respondents but were re-directed part....

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....the authorities to find out as to whether the gate passes in question were referable to the inputs in question and in the impugned order the gate passes in question have been accepted by the lower appellate authority without any verification. Since verification of the gate passes vis-a-vis inputs in question would appear to be necessary in the context of the Modvat Scheme, we set aside the impugne....

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....straightaway accepted since this can lead to misuse. It is possible that another set of goods which have not suffered duty and which may have emanated from the same manufacturer or a different manufacturer may be sent under the original consignee's gate pass or in other words a duplicate transport may be made against the gate pass in question. In a situation as in the present case the gate passes ....

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....ition regarding diversion of goods from one consignee has been accepted by the authorities by prescribing issue of subsidiary gate pass procedure when the original gate pass is in the name of another consignee. This would show that production of original gate pass is not the sine qua non for taking Modvat credit and there can be a situation where evidence other than this can also be accepted. In t....