HIMACHAL FINE BLANKS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) The appellants had taken Modvat credit of CVD of Rs. 1,59,510/ - paid on inputs imported and cleared by them under two Bills of Entry mentioned below : -

(2.) Heard both sides. Ld. Counsel for the appellants submits that the reasons cited by the adjudicating and first appellate authorities are not valid enough to deny the credit. There was no dispute of the duty -paid nature of the goods, nor of the receipt of the goods and utilisation thereof in the appellant's factory for the manufacture of final products. In such circumstances, the credit ought not to have been denied. It is further submitted by the Counsel that the TR -6 challans evidencing payment of duties of customs on the goods were produced before the original authority but the same were not accepted as valid proof of payment of the duties on the goods. The Commissioner (Appeals) also has not properly examined the correlatibility of the TR -6 challans to the Bills of Entry. Ld. Counsel further relies on the Tribunal's decision in Gabriel India Ltd. v. CCE [1993 (67) E.L.T, 131], wherein TR -6 challan coupled with certificate issued by Supdt. of Central Excise was accepted as proof of payment of duty on inputs and, accordingly, Modvat credit of such duty was allowed. Ld. DR, apart from reiterating the findings of the adjudicating and first appellate authorities, points out that the instant case is distinguishable from that of Gabriel India Ltd. inasmuch as, in the instant case, no certificate of any officer of customs has been produced by the party in proof of payment of the CVD by them on the subject goods.

(3.) I have examined the submissions and the cited case law. It appears from the record and the submissions that the TR -6 challans have not been accepted as proof of payment of CVD on the imported goods covered by the Bills of Entry. Copies of these challans are available on record. One of these two challans indicates payment of total amount of duties of customs of Rs. 1,76,876/ -. No amount of CVD is separately shown in this document. However, this document indicates that the payment of the said amount of duties of customs is against one of the subject Bills of Entry. Similarly, the other TR -6 challan indicating payment of total amount of Rs. 1,96,719/ - is purportedly against the other Bill of Entry. Apparently, this correlatibility has not been examined by any of the authorities below. Ld. Counsel's submissions to the effect have to be accepted. However, ld. DR is right in his submission that, in the cited case, any TR -6 challan alone was not accepted as a valid document for availment of Modvat credit. A challan was accepted only along with a certificate of the Central Excise Range Supdt. Ld. DR has further pointed out that the appellants could have obtained a similar certificate from the proper officer of customs and produced it to the adjudicating authority. In view of these submissions, I am inclined to remand the matter to the original authority, with certain directions.