COMMISSIONER OF CENTRAL EXCISE Vs. COIMBATORE MURUGAN MILLS

JUDGEMENT

(1.) Revenue being aggrieved with the order passed by the Commissioner (Appeals) vide which he had extended the benefit of Modvat credit availed by the appellants on the basis of the endorsed invoices issued by the sister unit, M/s. Pioneer Spinners has filed the present appeal.

(2.) We have heard Ld. DR, Shri C. Mani for the Revenue and Ld. Counsel Shri Jagadeesan for the Respondents.

(3.) It is seen that the appellant as also M/s. Pioneer Spinners are sister units of M/s. National Textile Corporation Ltd. M/s. Pioneer Spinners received the consignments of inputs and as the same was not required by them, they transferred it to their sister unit i.e. the Respondents herein and endorsed the invoices in their favour, The Respondents availed the benefit of Modvat credit on the basis of the said endorsed invoices. The Revenue objection is that such endorsed invoices are not the proper documents for the purpose of Modvat credit. Hence, the proceedings were initiated against them which culminated into an order passed by the original adjudicating authority against the Respondents. On appeal, the Commissioner (Appeals) reversed the order of the lower authority and hence this appeal.