CCE Vs. TWENTY FIRST CENTURY STEELS LTD.

JUDGEMENT

(1.) THE issue involved in this appeal, filed by M/s. Twenty First Century Steels Ltd., is whether the Modvat Credit of the duty paid on inputs is available to them on the strength of gate -pass endorsed three time.

(2.) WHEN the matter was called no one was present on behalf of the Respondents in spite of notice of hearing sent to them. I, therefore, heard Shri H.C.Verma, learned D.R., and perused the records. It is the contention of the Revenue that the Board in exercise of powers under first proviso to Sub -rule (2) of Rule 57G of the Central Excise Rules, 1944 has prescribed gate -pass which has been endorsed twice as the document evidencing payment of duty for the purpose of availing Modvat Credit; that as the gate -pass endorsed thrice has not been declared as document evidencing payment of duty the Respondents were not take Modvat Credit on the strength of such documents. The learned D.R. also submitted that the decision in the case of CCE, Chandigarh vs. Asian Alloys Pvt. Ltd. (Final Order No. A/1241/96 -NB dated 23.4.96 relied upon by the Commissioner (Appeals), has not been accepted by the Department and a refernce application has been admitted for hearing by the Punjab and Haryana High Court.

(3.) THE Commissioner (Appeals) has passed the impugned Order relying upon the decision of the Tribunal in the case of SBS Organic Pvt. Ltd. vs. CCE, 1990 (45) ELT 701 (Tribunal) and Final Order in the case of Asian Alloys Pvt. Ltd. (supra) observing that the issue involved is squarely covered by these decisions. I do not find any infirmity in the impugned Order. The Appellate Tribunal in SBS Organics case has held that the relaxation made by the Board up to two endorsements in the gate passes appears to be purely of administrative nature based on considerations of implementing the Modvat Scheme and long as the duty paid nature of the goods and duty paid thereon could be established.... When the Board themselves have taken a decision to relax the procedural requirement by way of administrative instruction it should be the endeavor of the authority to extend Modvat Credit whenever the duty paid nature o the goods is evident from the gate passes produced and the quantum of duty paid on the inputs could be ascertained from them." Mere fact that in the case of Asian Alloys reference application has been admitted by the Punjab and Haryana High Court will not make the gate passes endorsed thrice as an invalid document for the purpose of availing the Credit. I, therefore, reject the appeal filed by the Revenue.