COMMISSIONER OF CENTRAL EXCISE Vs. ECHJAY INDS. LTD.

JUDGEMENT

(1.) The instant appeal from revenue is directed against the order -in -appeal passed by the Commissioner (Appeals). Vide the impugned order the Commissioner (Appeals) allowed the respondent's claim of modvat. The original authority had rejected the claim.

(2.) Heard both sides.

(3.) It is alleged that, the respondents took modvat credit on the steel items received in their factory on the basis of invoices issued by M/s TISCO Ahmedabad. It was informed by the Range Superintendent in charge of M/s TISCO Ahmedabad that the modvatable invoices issued by the TISCO Ahmedabad (a registered dealer) are invalid documents. In a separate show cause notice issued to the said registered dealer (TISCO Ahmedabad) it has been alleged that the said invoices happen to be invoices issued by the third or subsequent stage dealer. With effect from 01/09/1996 such invoices are not valid for obtaining Modvat credit. It was alleged that, the registered dealer was required to issue invoices in the capacity of a first stage dealer, instead of zero stage dealer, because they had purchased goods from the manufacturer namely M/s Manish Metal Processing and Engg. Co. Pvt. Ltd. Jamshedpur (MMPEL) and the registered dealer is not working as a Depot or consignment Agent of M/s MMPEL from whom the registered dealer purchased the goods.