TaxTMI 
TaxTMI 
2009 (7) TMI 90
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....d notification, but endorsed subsequently and whether such gate passes could be recognized as proper duty paying documents ?" The brief facts giving rise to the present reference are that the respondent in this case was availing of modvat credit under Rule 57-A of the Central Excise Rules. The respondent was found to have taken the modvat credit on the strength of gate passes which were endorsed after 1.4.1994. The Assistant Commissioner of Central Excise, Ahmedabad therefore initiated proceedings by issuance of show cause notices dated 30.10.1994 and 5.1.1995 for wrong availment of modvat credit and has passed order in original dated 25.1.1996 confirming the demand of Rs.17,238/- being the amount of credit taken on endorsed gate passes. ....
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....e Tribunal are in favour of the assessee there is a solitary decision of Madhya Pradesh High Court to his knowledge, which had decided the same issue in favour of the Central Excise Department. He invited the Court's attention to the decision of Madhya Pradesh High Court in the case of Commissioner of Central Excise, Indore Vs. Shree Synthetics, 2007 (207) E.L.T. 341 (M.P.) wherein while disagreeing with the view taken by the Tribunal in the case of M/s. Moosa Haji Patrawala (P) Ltd., Vs. Commissioner of Central Excise (Supra) and Commissioner of Central Excise, Meerut Vs. Shine Wires (P) Ltd., 1998 (101) E.L.T. 425 (Tribunal), the High Court took the view that it is apparent from the proviso to the Notification that in order that a person ....
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....sessee. On behalf of the respondent-assessee nobody appears. The controversy between the parties arose in the fact situation that the respondent-assessee has, inter alia, received goods on endorsed gate passes on which the endorsement was made after 1.4.1994. Notification No.16/94-CE(NT) dated 30.3.1994 prescribed certain documents valid for the purpose of availing modvat credit. A list of such documents are mentioned in table (Sr.No.1 to 13) to the said Notification. The validity is subject to the condition that the documents mentioned therein were issued before 1.4.1994 and received in the factory alongwith the goods on or before 30.6.1994. The endorsed gate passes are one of the documents prescribed at Sr. No.10 of the table. The gat....
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.... the endorsed gate passes have been issued after 1.4.1994, the credit was not available. While overruling this objection the Tribunal held that, there was no dispute that the credit has been taken on or before 30.6.1994. The objection, prima facie, was not sound because the endorsed gate pass is not comparable to the issue of gate pass. What is mentioned in the proviso to Notification is that the document should have been issued. There is no dispute about the fact that gate pass was issued on 30.3.1994 and not the endorsement. The endorsement is for the purpose of transferring the goods covered by the gate pass. It is only an endorsement regarding transfer, on the gate pass already issued. The tribunal has further taken into consideration t....
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....Court we are of the view that the High Court has read something more which was not there in the proviso to Notification No.16/94-CE(N.T.) dated 30.3.1994. The proviso simply states that the documents have been issued before 1.4.1994 and the credit under the said rules has been taken on or before 30.6.1994. Proviso does not say that the documents should have also been endorsed before 1.4.1994. Even otherwise, issuance of subsequent Notification No.32/1994 dated 4.7.1994 makes it clear that the trader who has bought the goods against the gate pass issued on or before 30.3.1994 could not have issued a invoice for the purpose of modvat credit before the Notification No.32/1994 could come into force. It is settled legal position that one reads t....