1998 (3) TMI 200

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....K. Nayyar, JDR, for the Respondents. [Order per : A.C.C. Unni, Member (J)]. -  M/s. Prakash Strips Pvt. Limited, Jagadhari have sought reference of a question of law to the Hon'ble High Court, Punjab, Haryana and Chandigarh on the following terms : "In view of the fact that there is no statutory requirement in Rule 57G(2) of CE Rules, 1944 that the credit can be taken on the Gate Pas....

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....ppellants as a duty paying document for purposes of availing Modvat credit. The Tribunal had by the impugned order held that in terms of Proviso to Rule 57G(2) no credit shall be taken unless the inputs are received in the factory under cover of Gate Pass, ARI, Bill of Entry or some other document prescribed by the CBEC. The Tribunal had observed that a very important ingredient of a Gate Pass was....

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....and denial of Modvat Credit on that ground raised a point of law fit to be referred to the Hon'ble High Court as a question of law. Shri Agarwal, ld. Counsel also submitted that if the Tribunal was inclined to accept the prayer for referring the question of law to the Hon'ble High Court, the Tribunal may also be pleased to grant stay of the recovery of the said amount by the Department. He relied ....

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.... 1, it would be impossible to prevent sale/purchase of Gate Passes by third parties or persons who were not the actual users of the inputs and this would result in misuse thereof by persons who were not entitled to Modvat scheme. He, therefore, submitted that the Tribunal had rightly held that where credit is taken on the strength of Gate Passes which do not contain the consignees/assessee's name ....