Customs, Excise and Gold Tribunal - Calcutta
Super Forgings And Steels Ltd. vs Cce on 17 December, 2004
ORDER M.P. Bohra, Member (J)
1. Heard Shri S.K. Roychowdhury, ld. Advocate for the appellants Shri K. Sanyal, ld. JDR for the Revenue.
2. Shri Roychowdhury submits that the appellants availed modvat credit amounting to Rs. 4,63,670/- on the returned goods on the basis of their own invoices. Since the returned rejected goods were not received under the cover of customer's invoices, modvat credit was not allowed and the claims were rejected by the Deputy Commissioner of Central Excise, Howrah North Division and the appeal was rejected by the Commissioner (Appeals) on 22.09.2003. He submits that this case is squarely covered by the Larger Bench decision of the Tribunal in the case of Commissioner of Central Excise, Meerut II v. Bhushan Steel & Strips Limited reported in 2000 (119) ELT 293 (Tri). He, therefore, submits that the appeal may kindly be allowed.
3. Ld. JDR Shri K. Sanyal, reiterates the reasonings and findings given by the Commissioner (Appeals).
4. In the case of Bhushan Steel & Strips Limited referred (supra), the Larger Bench of the Tribunal at Northern Bench, New Delhi, has held as under :
"Modvat - Defective cold rolled coil/sheets received back for re-processing and then cleared on payment of appropriate duty - process undertaken by the assessee, amounted to the process of manufacture, hence modvat credit admissible - Rule 57A of the Central Excise Rules, 1944 (para 5)".
The instant case is also covered by the decision rendered in the case of Bhushan Steel & Strips Limited referred to above. In view of the above Larger Bench decision, I set aside the impugned order and allow the appeal with consequential benefit to the appellants.