CCE Vs. PASUPATI HARYANA WOOLLENS LTD.

JUDGEMENT

(1.) This appeal has been filed by the Revenue against the Order -in -Appeal No. 120/03 dated 3.4.2003, by which the Commissioner (Appeals), has allowed the Modvat Credit to M/s. Pasupati Haryana Woollens Ltd.

(2.) Shri O.P. Arora, learned SDR, submitted that the respondents manufacture yarn and avail Modvat Credit under Rule 57A of the Central Excise Rules, 1944; that the respondents had taken Modvat Credit on the strength of 4 gate passes dated 29.7.93, 4.9.93, 14.9.93 and 13.12.93; that these gate passes were endorsed for Tops, though originally consigned for Tows; that, thus, a conversion from Tow to Tops has taken place; that the consigner was M/s. Indian Organic Chemical Ltd., Madras and the goods were received after conversion of Tows to Tops by M/s. Wellman Hindustan Ltd.; that Tows and Tops are different commodities and since the change had taken place after conversion of Tows to Tops, the endorsement on gate passes, issued in such a situation, cannot be treated as valid duty -paying document, He, further, submitted that the respondents had also taken Modvat Credit on the basis of two subsidiary gate passes for Tops issued by the Supdt. of Central Excise, Range -I; that scrutiny of these two subsidiary gate passes reveals that the goods were manufactured by M/s. Indian Organic Chemical Ltd., Madras whereas in column No. 1, the name and address of the party, which paid duty on the goods and applied for issue of subsidiary gate passes, have been shown as M/s. Indian Organic Chemicals Ltd., Pondicherry; that subsidiary gate passes, issued in this matter, are not valid duty -paying documents for claiming the Modvat Credit.

(3.) On the other hand, Shri V.M. Verma, learned Advocate, submitted that the subsidiary gate passes had been issued by the Range Superintendent and it is not the case of the Department that these certificates are not genuine one; that in absence of such a plea, the Department cannot doubt the veracity of the subsidiary gate passes; that the gate passes have also been endorsed in favour of the respondents and as per the provisions of Notification No. 16/94 -CE (NT) dated 30.3.94, these are valid duty -paying documents on the basis of which the Modvat Credit can be availed of.