BIRLA VXL LTD. (OCM WOOLLEN Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) In this appeal field by M/s. Birla VXL Ltd. OCM Woollen Mills, Amritsar, the matter relates to the availment of the modvat credit on the basis of the documents, which according to the Commissioner of Central Excise (Appeals) were not the proper documents. In para -5 of the impugned order, it has been observed by the appellate authority that the assessee has taken modvat credit on the basis of the invoices, which were other than duplicate/original copy. He has confirmed the view taken by the adjudicating authority wherein the Asstt. Commissioner of Central Excise had confirmed the demand of Rs.24,570/ - and also imposed a penalty of Rs. 2,500/ -.

(2.) Shri R. Sudhinder, Advocate submits that the matter relates to the initial stages of the Scheme when the provisions regarding documentation on the strength of which the credit was to be taken, were not very clear. He submits that in any case, the dealer, who had issued the invoice in question i.e M/s. Sharda Chemicals of Delhi had obtained registration from the Department in 1994 itself and their registration number was 152/94 Range -I, Division -I, Central Excise Collectorate, Delhi, which is indicated on the Bill No.008813 dated 6.4.95, whose copy has been placed at page 21 of the paper book. He further submits that all the relevant particulars were in the invoice and the duplicate copy was in possession of the assessee. He also submits that if an opportunity is given, they will be able to produce the duplicate copy of the relevant invoice on the strength of which the modvat credit in the present case has been taken. He further submits that the ld. Commissioner (Appeals) has not referred to the relevant Rules 57 GG of the Central Excise Rules and had decided the matter only on the basis of Rule 52 A of the Central Excise Rules.

(3.) In reply, Shri M.D. Singh, SDR submits that Rule 57 A of the Central Excise Rules is also relevant as in this case the credit according to the Department has been taken on the strength of un -authorised documents.