2006 (8) TMI 456

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....t credit on the original invoice since duplicate copy of the invoice was lost in transit. On being pointed out by the range authorities appellant reversed the Modvat credit taken on original invoice on 13-7-99. Appellant applied to the Jurisdictional Assistant Commissioner on 10-8-99 for granting them permission to avail modvat credit and on the same date availed the credit in RG 23A Part II. Show cause notice was issued to the appellant on the ground that their application for availing credit on original invoice has been rejected by the Jurisdictional Assistant Commissioner. The adjudicating authority confirmed the demand, also imposed penalty and sought the recovery the interest on such Modvat credit. On an appeal, Commissioner (Appeal) a....

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....eceived the inputs covered under invoice dated 11-2-99 and consumed in the factory. Only question being disputed is that the appellant had not applied for the permission from the authorities before the availment of the credit on original invoice. The Commissioner (Appeals) has rejected the appeal of the appellant on the following ground:-           "But in this case I find the appellant had taken credit suo motu even without waiting for the permission of the competent authority. As such their action is in violation of the letter and spirit of the said rule. The question of actual receipt of goods in this regard is irrelevant, as no enquiry by the proper officer to satisfy himself regarding the....

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....red by the user of inputs specified under rule 57J are received by the manufacturer, after nine months." 7. From the plain reading of the above said rule, it can be seen that the credit of inputs received in the factory can be availed on the original invoice if the duplicate of the invoice has been lost in the transit subject to the satisfaction of the Assistant Commissioner of Central Excise that the inputs has been received in the factory and the duty was paid on such goods. I find that in this case, both these important aspects are undisputed. If that be so, the Assistant Commissioner's letter dated 22-11-99 indicating to the appellant that cannot be any post facto sanction does not hold ground and is against the principles of th....