CONTROLS AND SWITCHGEAR CO. Vs. CCE, MEERUT

JUDGEMENT

(1.) There is no representation for the appellants today inspite of notice. However, in the interest of justice, I am inclined to dispose of this matter after examining the records and hearing ld. Departmental representative.

(2.) The appellants are manufacturers of Electrical goods and are availing the facility of modvat credit on inputs under Rule 57A of the Central Excise Rules. They took modvat credit of Rs. 1,30,786.65 on inputs in April 1994. A part of this credit was taken on the strength of original copy of invoice as the duplicate copy had been lost in transit. Another part of the above credit was taken on the strength of invoices issued by unregistered dealer and the remaining credit was taken on the strength of gate passes issued prior to 31.3.94 but endorsed after that date. The jurisdictional Assistant Commissioner allowed the entire credit. The order of the Assistant Commissioner was reviewed by the jurisdictional Commissioner, whereupon the department preferred appeal to the Commissioner (Appeals). Ld. Commissioner (Appeals) found that the only challenge in the department's appeal was in relation to the modvat credit allowed to the party on the strength of endorsed gate passes and he sustained the challenge, thereby disallowing the modvat credit taken on the basis of endorsed gate passes. The present appeal by the assessees is against this decision of the Commissioner (Appeals).

(3.) I have carefully examined the impugned order of the Commissioner (Appeals) and have also heard ld. JDR, Sh. A.K. Jain. Ld. JDR rightly submits that the order of the Commissioner (Appeals) is not a speaking order inasmuch as there is neither any discussion nor any record of reasons in the impugned order for upholding the contention of the department. The impugned order reflects total non -application of mind also. In view of these deficiencies of grave nature in the impugned order, I have no option but to set aside the order and remand the matter to the lower appellate authority. Accordingly, I set aside the impugned order and allow this appeal by way of remand. Ld. Commissioner (Appeals) shall pass a fresh speaking order after duly considering the department's grounds of appeal and granting a reasonable opportunity of hearing to assessees.