STEEL AUTHORITY OF INDIA LTD. Vs. CCE

JUDGEMENT

(1.) M/s. Steel Authority of India Ltd. have filed this appeal being aggrieved by the impugned order passed by the Ld. Commissioner (Appeals) disallowing Modvat credit amounting to Rs. 15,58,960 and imposing the penalty of Rs. one lakh.

(2.) The facts of the case briefly stated are that M/s. Steel Authority of India Ltd. have a number of steel plants. While examining the records of Bhilai Steel which is one of the plants of M/s. Steel Authority of India Ltd. It was alleged that the assessee availed modvat credit during the period of the April' 94 and May' 97 on the strength of invalid/unapproved duty paying documents. They were, therefore, called upon to explain as to why duty amounting to Rs,15,58,960 should not demanded from them and why penalty should not be imposed. In reply to the SCN, the appellants submitted that they were getting raw -materials from subsidiary company or sister plant; that there was no dispute that the subject goods were duty paid and were received in the plant for manufacture of some other items; that the allegations are that either the payment particulars have not been mentioned or the movement of the goods have taken place under gate passes which were not submitted that in case, Modvat credit has been taken on the strength of extra copy of the invoice and in some cases, Modvat credit has been availed on the strength of original copy of the invoices.

(3.) Arguing the case for the appellants Shri M.P. Devnath, Ld. Counsel submits that it was the beginning of the introduction of the new scheme effective from 1.4.94. He submits that before that certain concessions were permitted to various plants of M/s. Steel Authority of India Ltd. as also other Public -Sector Undertakings. He submits that there are a number of decisions of the Tribunal dealing with various aspects and objections raised by the Department. He submits that in the case of Finecore Cables (P) Ltd. v. CCE, Bangalore 1997 (23) RLT. 842, this Tribunal held that invoice issued by depot of Hindustan Copper Ltd., credit on the basis of original copy of invoice could be allowed subject to verification. Ld. Counsel submitted that in the case of Britannia Engineering Ltd. v. CCE, Calcutta -III , this Tribunal held that customer's copy issued by M/s. SAIL is eligible document for taking Modvat credit since during relevant period M/s. SAIL was issuing only the customer's copy and not duplicate invoice. Ld. Counsel submitted that this Tribunal In the case of L and T Ltd. v. CCE, Bhubneswar 1994 (3) RLT 215 held that modvat credit could be taken on the strength of delivery challans issued by stock -yard of SAIL as proper documents for taking Modvat credit. Ld. Counsel also read copiously from Notification Nos. 15/94, 16/94, 21/94, 32/94 in support of his contentions. Further that during this period, the appellants herein were given the concession for a period of three months w.e.f. 1.4.94 as is evident from Central Board of Excise and Customs clarification.