2009 (1) TMI 135

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....nal, New Delhi (for brevity, 'the Tribunal'). It has claimed that the following substantial questions of law would arise for determination of this court :- "(i) Whether a manufacturing unit, providing capital goods to a buyer who has interest in the manufacturing unit's business, without entering into a financial arrangement, i.e., loan agreement, and provides finance for value and Central Excise duty of the capital goods to the buyer, fall outside the purview of Rule 57R(3) as held by Tribunal? (ii) Whether Modvat credit of capital goods acquired by manufacturer on loan from a finance company be allowed, if the assessee has not followed the prescribed procedure under Rule 57R(3)? (iii) Whether penalty equal to the duty determined ....

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....own in sub-rule (3)(ii)(a) of the Rules wherein the credit could be availed on the capital goods procured against the agreement made for the cost of capital goods excluding the specified duty. Learned counsel further pointed out that the respondent-Company never filed a copy of the invoice to the department and finally, it was prayed that the impugned orders passed by the Tribunal be set aside. 4. Per contra, it was argued by the learned counsel appearing for the respondent-Company that the benefit on Modvat credit goods cannot be denied to them as they have purchased goods from MUL and MUL is a manufacturing unit and not a finance company, therefore, Rule 57R(3) of the Rules is not applicable in this case. Learned counsel has further su....

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....ded by the Tribunal while passing order dated 19-12-2003. 7. Learned counsel appearing for the respondent has rightly pointed out that all the goods in question have been received under Invoice E-1128 dated 1-6-1999 and the receipt of the goods is not the subject matter of challenge in the instant appeal and as such, there is no occasion of denial of credit. He has taken us through the Invoice in question, which clearly spells out that the description of receipt of various goods is explicitly noted therein and it proves beyond doubt that the credit had been taken in RG-23C Part II vide entry No. 772 dated 1-6-1999. In the facts and circumstances as set out in the appeal, it is abundantly clear that the credit did not attract the provisio....