CCE CHANDIGARH Vs. RINE ENGG. (P) LTD

JUDGEMENT

(1.) Revenue has filed this appeal against the Order No. 2086/CE/CHD/99 dt. 30 -11 -99, passed by the Commissioner (Appeals), allowing the Modvat Credit to M/s Rine Engineering (P) Ltd on the strength of unauthenticated invoice and in respect of angles, channels etc., for not submitting the proof of their use in the manufacture of final product.

(2.) Shri H.R.Bheema Shankar, Ld. SDR., submitted that the credit cannot be availed of on the basis of unauthenticated invoice issued by second stage dealer; that the Respondents had not adduced any evidence to their claim that Channels, angles, rounds, bars and rods were melted alongwith ferrous waste and scrap to manufacture castings; that these are also not inputs under the definition of Rule 57 A of the Central Excise Rules.

(3.) Countering the arguments, shri J.S. Agarwal, ld. Advocate, submitted that the Respondents had duly declared channels, angles, rods, bars and rounds in their Modvat Declarations dt. 20 -2 -1996 and 18 -6 -98; that they were using these inputs in the manufacture of their final product; that they had melted these inputs for making their final product and there is no allegation from the Department that these inputs were cleared as such clandestinely. He finally submitted that the Modvat Credit cannot be denied merely because the invoice was not preauthenticated as the receipt of inputs is not challanged.