Customs, Excise and Gold Tribunal - Mumbai
Usha Associates vs Collector Of C. Excise And Customs on 1 January, 1993
Equivalent citations: 1995(78)ELT281(TRI-MUMBAI)
ORDER R. Jayaraman, Member (T)
1. This is an appeal against the order in appeal bearing No. KVV-330/92/BRD, dated 24-6-1992.
2. The facts of the case are that the appellants who are the manufacturers of metal containers, are receiving inputs viz. steel sheets. In the case of 2 coils of rejected C.R. Sheets received under the cover of original gate pass No. 2598, dated 14-12-1990, it was found that the Gate Pass was issued by the manufacturers of steel sheets to M/s. Sanghvi Steel, Bombay, who are the dealers. All the same, the entire consignment covered by the Gate Pass is reported to have been received by the appellants and utilised in the manufacture of metal containers. The Department took objection that the said Gate Pass was not endorsed in favour of the appellants and hence the modvat credit amounting to Rs. 9513 in respect of the duty paid on the inputs covered by the aforesaid gate pass was denied by the Asstt. Collector in his order in original. The said order has been confirmed by the Collector (Appeals). Hence, the present appeal before me.
3. After hearing both the sides, I find that as per the Board's stipulation, gate pass is to be endorsed in favour of the assessee, who takes modvat credit. Only such endorsed gate pass is recognised as duty payment document for purpose of the credit in terms of Rule 57G of the Central Excise Rules. However, mere non-endorsement cannot deny the modvat credit since it is a remediable defect. Hence, I would deem it proper to direct the appellants to get the Gate Pass endorsed or to produce a certificate from M/s. Sanghvi Steel, Bombay to the effect that the entire consignment covered by the aforesaid Gate Pass has been transferred to the appellants and no modvat benefit was availed of in respect of the said consignment by any one else. On the basis of such endorsement on the Gate Pass, the Department may cause such enquiry as necessary and allow the modvat credit if the said gate pass has not been utilised for modvat benefit elsewhere. Appeal is allowed in the above terms.