Customs, Excise and Gold Tribunal - Mumbai
Nazareth Metals vs Commissioner Of Cen. Excise on 5 March, 2003
ORDER
Jyoti Balasundaram, Member (Judicial)
1. After hearing both sides for some time on the application for waiver of pre-deposit duty of Rs. 4,14,397/- and penalty of rs. 40,000/-, I found that it is possible to dispose of the appeal itself at this stage; hence, after granting the prayer for waiver, I proceed to hear both sides and dispose of the appeal.
2. Modvat credit of Rs. 4,14,397/- has been disallowed to the appellants on the ground that on the 2 Bills of Entry in question viz. B/E No. 1440447 dtd. 19.3.2001 and B/E No. 1500565 dtd. 4.4.01, the address of the importer is that of the registered premises of the manufacturer and the second address is that of the godown of the dealer. In other words, the credit had been denied on the ground that the importer is different from the manufacturer who availed modvat credit and utilised.
3. I have heard both sides and have satisfied myself that the appellant before me viz. Nazareth Metals is the importer and the manufacturer who has utilised the inputs in the manufacturer of its final product and correctly availed of modvat credit. The technical lapse pointed out by the authorities below cannot result in the denial of substantive benefit of modvat credit, particularly when it is clear that it is the importer who himself is the manufacturer and there is no dispute regarding the use of the inputs in the final products manufactured by the appellant. Therefore, the duty demand and penalty are not sustainable. Accordingly, I set aside the same and allow the appeal.
(Dictated in Court)