YOGI TEXTURISERS LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS application is for dispensing with the pre -deposit of an amount of Rs. 11,48,923/ - and penalty of Rs. 5,000/ - (Rupees five thousand only). The Department's case against the applicants is that they have availed of modvat credit on the basis of the Original Customer's copy of Invoice issued by the manufacturers instead of taking modvat credit on transporter's copy issued under Rule 52A of the Central Excise Rules, 1944.

(2.) SHRI S.D. Gohil, the Ld. Consultant for the applicant's submitted that the invoice in question had been issued by the supplier, who was in the Jurisdiction of Collector of Central Excise, Surat. The Supplier had acted in accordance with the Trade Notice issued by the Commissioner of Central Excise, Surat, and therefore modvat credit has been correctly taken as per law. The Ld. Consultant also submitted that the applicant have received the material input from suppliers who are dealers and not manufacturers, and hence the amended Rule 52A relating to duplicate copy of the Invoice being the approved modvat credit document is not applicable.

(3.) SHRI S.V. Singh, the Ld. JDR opposed the stay, pointed out that the supply in this case is from the manufacturer Reliance industries to their own Depot. Therefore, Rule 52A will apply. The Trade Notice issued by a Collector cannot over -ride the provisions under Rule 52A and 57G.