CCE Vs. STEEL AUTHORITY OF INDIA

JUDGEMENT

(1.) THIS is an appeal filed by Revenue against Order -in -Appeal No. 430/97 dated 20.11.1997 by which the ld. Commissioner (Appeals) has allowed Modvat credit of the duty paid on capital goods under Rule 57Q of the Central Excise Rules, 1944.

(2.) WE heard Shri A. Jayachandran, ld. DR for the revenue, and Shri N. Venkataraman, ld. Advocate for the respondents M/s. Steel Authority of India Ltd. It has been fairly mentioned by both ld. DR and ld. Advocate that almost all the capital goods involved in the present appeal are covered by the decision of the Supreme Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd. and Tribunal's decision in their own case that is SAIL v. CCE vide Final Order No. 1230/2002 dated 7.11.2002.

(3.) LD . DR pointed out that certain goods have been received by the units other than the units in whose name the duty paying documents have been issued. After amendment of Rule 57T vide Notification No. 7/99 -CE dated 9.2.1999 the Modvat credit is not to be disallowed merely on the ground of certain procedural shortcomings in the duty paying documents. It has also been clarified by the Board vide Circular dated 23.2.1999 that Modvat credit need not be disallowed on account of some shortcomings in the duty paying documents. If the Assistant Commissioner/Deputy Commissioner is satisfied that the capital goods have been received in the factory, they have suffered duty and they are being used or intended to be used in the manufacture of finished goods. As Revenue has not contended that the goods have not been used in the manufacture of final product the Modvat credit is not disallowable on this count.