COMMR. OF C.E. Vs. SREE GOPALAKRISHNA POLLY

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue against the order of the Commissioner of Customs and Central Excise (Appeals), Trichy. Under the impugned order, the learned lower authority has allowed the appellants the benefit of MODVAT Credit in respect of the goods which were received under cover of gate passes which had been endorsed three times. At the relevant time the notification issued by the Board under Rule 57G permitted the facility only where the gate passes were endorsed only once. The learned lower authority has relied upon the judgment of the West Regional Bench in the case of SBS Organics Pvt. Ltd. v. CCE reported in 1990 (45) E.L.T. 701 cited before it while allowing the benefit.

(2.) THE learned JDR for the Department has pleaded that the MODVAT Credit could be taken only when the inputs were received under the cover of specified documents under Rule 57G of the Central Excise Rules or such of the documents as may be notified by the Board under Rule 57G. He pleaded that while gate passes are specified as one of the documents under Rule 57G itself, by notification the Board has allowed the benefit to be given also to the goods which were received under gate passes which had been endorsed once. He has pleaded in the present case admittedly the gate pass had been endorsed three times and therefore it was not an authorised document for the purpose of taking MODVAT Credit.

(3.) THE learned Advocate for the appellants relied upon the judgment of the West Regional Bench referred to supra. He also pleaded even if there was some procedural infraction the appellants should not be denied the substantial benefit and cited the judgment in the case of Vikrant Tyres reported in 1986 (26) E.L.T. 652 1 Should be Vikarant Tyres reported in 1986 (26) E.L.T. 65 - Ed.