TaxTMI 
TaxTMI 
1997 (9) TMI 293
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.... have been denied the benefit of Modvat Credit on the following three grounds :- (1) Credit taken on the strength of endorsed subsidiary gate pass : Amount involved Rs. 8,107.55. (2) Credit taken on endorsed invoice during the period 1-4-1994 to 7-7-1994 when the invoices were issued in the name of principal who was getting the goods manufactured from the appellants on job work basis and they were functioning under Notification 27/92. Amount involved Rs. 10,78,502.45. (3) Undeclared inputs. The inputs were received under the brand name of the supplier while the appellants had declared the goods by generic name : Amount involved Rs. 13,899/-. 2. Shri G. Sampath, learned Counsel for the appellants fairly conced....
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....ds to comply with all procedural formalities under the Central Excises and Salt Act, 1944 (1 of 1944) and the rules made thereunder, in respect of the goods manufactured on behalf of the said manufacturer and, in order to enable the determination of value of the said goods under Section 4 of the said Act, to furnish information including the price at which the said manufacturer is selling the said goods and the person so authorised agrees to discharge all liabilities under the Act and the rules made thereunder.     [Authority. - Notification No. 27/92-C.E. (N.T.), dated 9-10-1992] He has pleaded that in terms of this Notification, duty is required to be paid based on the information as to the price at which the goo....
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....s as were declared in the declaration filed under Rule 57G. He has pleaded that he is prepared to pay this amount if the appellants are not able to show that the goods they received were not co-relatable with the description as given in the declaration. The learned SDR has no objection to this course of action. 6. We have considered the pleas made by both the sides. We observe that as it is, the appellants have accepted the payment of amount in respect of the first element above and also in respect of the third element subject to verification, they are prepared to pay the duty amount as ordered in regard to the third element. This leaves out the demand in respect of the second element i.e. receipt of the goods on endorsed invoices. ....
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....documents, than the earlier notification regarding endorsement on the same for acceptance for Modvat purposes has to be taken to apply to the gate passes. The learned JDR confirms that prior to 1-4-1994 gate passes endorsed twice were acceptable as valid documents. We therefore, hold that if the gate passes in respect of the goods in question were issued prior to 1-4-1994 and the number of endorsements on the same was no in excess of notified earlier, appellants will be entitled to the benefit of Modvat credit. Subject to the above, the appeals are allowed. The question that falls for consideration is in respect of the Modvat Credit taken beyond the period 30-6-1994 on the endorsed invoices. We observe that in the present case, the appel....