SHREE KRISHNA ROLLING MILLS LTD. Vs. CCE

JUDGEMENT

(1.) The issue involved in this Appeal filed by M/s. Shree Krishna Rolling Mills Ltd. is whether modvat credit is available to them on the strength of the invoice issued by a dealer who did not have the duplicate copy of the invoice under which the inputs were received by him.

(2.) Shri K.K. Anand, learned Advocate, submitted that the Appellants manufacture iron and steel bars, angles etc.; that the Assistant Commissioner under the Adjudicating Order No. 78/96 dated 31.1.96 disallowed the modvat credit, on the ground that M/s. TISCO, Jaipur which had issued the dealers' Invoices to the Appellants, did not submit the duplicate copy of invoice to the proper officer; that on Appeal the Commissioner (Appeals) had also rejected their Appeal as the duty paid nature of the goods could not be verified.

(3.) Learned Advocate further submitted that in their own case, the Tribunal vide Final Order No. A/263 -267/2001 NB (SM) dated 14.2.2001 has allowed the Appeal holding that if some irregularity had happened at the end of registered dealer the action should have been taken against him and not against the Appellants. He, further, submitted that the Tribunal while allowing their Appeal had relied upon the decision in the case of CCE Jaipur v. KEC International Ltd. wherein it was held that "if it is the case of the Department that the SAIL depot as a dealer, have committed any irregularity in passing of the modvat credit to the manufacturers then, they should have been made the party to the proceedings on any other section as per the provisions of law, could have been taken against them. In the present case, as the receiver of the invoices, there is no violation of any rule committed by the respondents and, therefore, the modvat credit had been rightly allowed to them by the lower appellate Authority." Finally, he submitted that the decision in the case of CCE Jaipur v. Tiruhari (India) Pvt. Ltd. 1999 (33) RLT 167 is applicable and the Commissioner (Appeals) has wrongly distinguished the same.