2017 (1) TMI 1174

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....July, 2000 and the show cause notice was issued on 27.02.2001. The Commissioner(Appeals) upheld the Adjudication order. The dispute is with regard to availing of MODVAT Credit on the basis of endorsed duty paying documents. 2. Ld.Counsel appearing on behalf of the Appellant submits that there is no dispute about the duty paid nature of the goods, receipt of the same by the Appellant and payment of duty on the final product. He reiterated the grounds of appeal. Ld.Consultant for the Appellant further argued that the procedure of endorsement was only procedural requirement and cannot take away the substantial right of the Appellant to take credit if the duty paid inputs are received in the factory and used in the manufacture of finished go....

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....(Tri.-LB) that after 01.04.1994, endorsed invoices were not valid documents for the purpose of MODVAT Credit. The decision of the larger Bench has been followed by the Hon'ble High Court of Gujarat at Ahmedabad in the case of Commissioner of C.Ex. & Customs Vs. Marigold Coatings P. Ltd. reported as 2016 (337) ELT 515 (Guj.). Relevant paras of the said judgement are reproduced below:- "5. Final Order No. Learned counsel Shri Ravani for the department submitted that the Tribunal has committed a serious error in allowing the appeal of the respondent assessee ignoring the amended requirement of Section 57G under which only upon production of certain documents, the assessee would be eligible for taking Cenvat credit. The Tribunal ignore....

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....a manufacturer to avail cenvat credit on the inputs used. As noted by the CIT (Appeals), Rule 57G amended with effect from 1-4-1994 by which invoices issued by the manufacturers of goods and the dealers in the prescribed form are considered valid duty paying documents and thus endorsement of duty paying documents, were eliminated. This is precisely what was considered by the Larger Bench of Tribunal in case of Balmer Lawrie & Co. Ltd. (supra), in which it was held that after issuance of notification dated 4-7-1994, invoices can be issued only by a registered dealer and only then Modvat credit can be claimed on the strength of such invoices. The requirements of notification dated 30-3-1994 are mandatory in nature and no credit would be avail....