CCE Vs. EROS PHARMA (P) LTD.

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue against the order of the Collector of Central Excise (Appeals), Bangalore. Under the impugned order, the learned Collector has allowed the benefit of Modvat Credit to the Respondents based on the invoices which had been endorsed by the dealer. The Revenue has urged the following grounds in the grounds of appeal:

(2.) THE learned JDR for the Department pleaded that Rule 57G, among other conditions, stipulates that no credit shall be taken unless the inputs are received in the factory under the cover of an invoice issued under Rule 52A, and A.R. 1 or a triplicate copy of the Bill of Entry or any other document as may be prescribed by the Central Government by notifying in the official Gazette evidencing payment of duty on the inputs received. He has pleaded that the invoices issued under Rule 52A is the one under which the goods are actually removed from the factory of the manufacturer and in the present case the goods were removed to a dealer's factory. In a situation when the inputs are received from a dealer who are registered for the purpose, they are authorised to issue their invoices in terms of Rule 57GG. In the present case the goods came to be sold by the dealer on the invoice of the manufacturer who had endorsed the same. He has pleaded that rules clearly provided that no credit shall be taken unless the invoice issued is under Rule 52A in case the goods directly moved from the manufacturer to the factory where the Modvat Credit is being taken or they should be received under the cover of invoice under Rule 57GG. He has pleaded that there was no instruction at the relevant time that the Modvat Credit should be allowed based on the endorsed invoices. He has pleaded that the gate pass was the required document prior to the amendment of Rule 57G by which the requirement of gate pass was dispensed with and the particulars in this regard were incorporated in the invoice itself. He has pleaded that in the absence of any notification allowing Modvat Credit on endorsed invoices, the appellant could not take the Modvat credit on the endorsed invoices. At this stage, on a query from the Bench, the learned JDR informed that in that transitory period, Gate Passes which are issued prior to 31.3.1994 were allowed to be accepted even if endorsed upto 30th June, 1994 as per Notification No. 16/94. He has pleaded, for acceptance of the endorsed invoices however no specific notification was issued and going by the strict interpretation of law endorsed invoices could not be accepted. The learned JDR before conclusion of his argument pleaded that the whole consignment as such was sent by the manufacturer was endorsed by the dealer to the assessee.

(3.) THE Respondents have sought for decision of the appeal based on records and also based on their submissions in their Paper Book. They in their submissions before the Collector (Appeals) in the grounds of appeal have urged as under: