FERMENTAPHARMA BIODIL LTD. Vs. CCE

JUDGEMENT

(1.) THIS is an appeal filed against the order of Commissioner of Central Excise, Chandigarh dated 18.6.1996. Learned counsel stated that the benefit of credit has been denied even though the specified documents i.e. duplicate copy of the invoice had been produced before the adjudicating authority, the appellants, are engaged in the manufacture of goods falling under chapter 29 and are availing the benefit of modvat credit in respect of the duty paid on the inputs. The factory of the appellants is located in a village in Mandi district of Himachal Pradesh whereas the head office of the company is at Bombay. The appellants had received a consignment of Penicillin G -Potassium 1st Crystal from M/s. Hindustan Anti -Biotics Ltd., Pimpri, Pune, Govt. of India Enterprises on payment of appropriate duty of excise. The supplier of the inputs namely M/s. Hindustan Anti -Biotics Ltd. had forwarded two copies of the invoice i.e. original as well as duplicate to the appellants. It had so happened that instead of sending duplicate for transporter to the factory, the suppliers had sent the original copy of the invoice to the factory and the duplicate copy of the invoice to the head office of the appellants. The appellants had taken the credit on the strength of the copy of invoice which was received along with the goods.

(2.) IT was his submission that the department had taken objection that the credit is to be allowed to a manufacturer on the strength of transporter's copy and not on the strength of original copy. The appellants had explained the above narrated facts to the Deputy Commissioner in reply to the show cause notice. However, he ordered the amount to be recovered under Rule 57 -I and imposed personal penalty. Commissioner (Appeals) has upheld the decision of the Deputy Commissioner.

(3.) HE further stated that it ought to have been appreciated that it was a case of unintentional omission resulting into forwarding of the duplicate copy to head office. The authorities below ought to have appreciated that credit can be taken within six months of issue of an invoice. There existed absolutely no basis for imposition of a penalty. There is no objection with regard to the payment of duty on the inputs, receipt of goods and utilisation of the inputs into the factory.