Customs, Excise and Gold Tribunal - Delhi
M/S. Insulators & Electricals Company vs Cce, Bhopal on 12 February, 2001
Equivalent citations: 2001(76)ECC105
ORDER
V.K. Agrawal
1. The issue involved in this appeal, filed by M/s Insulators and Electricals Co. is whether the modvat credit is available to them on the basis of Gate Pass after 30-6-94.
2. Shri A. Ansari, Ld. Advocate, submitted that before the introduction of invoice, the excisable goods were cleared from the factory under GP-I; that the Gate Passes remains to be valid document showing duty paid nature of the inputs even after 30-6-94; that invoice as well as gate passes have same information required for availing modvat credit; that the only difference between two documents is name os the document only; that the legal position is same in both cases because the information required by the Deptt. was duly given in the gate pass. He, further, submitted that the Central Board of Excise and Customs had issued a Circular No. 76/76/94 dt. 6-11-94 which provides relief to manufacture/dealers during the transitional period i.e. change of Gate Pass to invoice. He finally mentioned that the Madras High Court in CCE Coimbatore Vs. CEGAT Chennai 2000(122) ELT 37(Mad), has directed the Tribunal to refer the question of law as to whether the Tribunal was right whether the modvat credit is available on the strength of gate passes ever after 30-6-1994.
3. Opposing the arguments, Shri A.K.Jain, Ld. DR, mentioned that under Rule 57 G modvat credit cannot be availed unless the inputs are received in the factory under the cover of specified duty paying documents; that gate pass was not one of the specified duty paying documents; that Govt. by Notification No. 16/94-CE(NT) dt. 30-3-94 has provided that Gate Pass issued under Rule 52A, as stood before 1st April 1994, shall be valid document for availing of the Modvat Credit subject to the condition that the Gate Pass should have been issued before 1-4-1994 and the credit had been taken on or before 30-6-94. He, further, submitted that as the credit has been taken after 30-6-1994, Gate Passes was not a valid document. In this regard he relied upon the decision of the Larger Bench in the case of CCE New Delhi Vs. Avis Electronics Pvt. Ltd. 2000(117) ELT 571(T).
4. I have considered the submissions of both the sides. The Larger Bench of the Tribunal in the case of Avis Electronics Ltd. has held that "Insistence on document evidencing payment of duty on the inputs as prescribed by Rules is not a technicality to be complied with for availing Modvat Credit.... When a particular thing is directed to be performed in a manner prescribed by Rules, it should be performed in that manner itself and not otherwise." Proviso to Rule 57G (2) clearly specified the documents on the basis of which Modvat credit could be availed of by any manufacturer. Gate Pass was not one of such document. As rightly pointed out by the ld. DR, the Gate Pass issued before 1-4-94 was specified by the Central Government as duty paying document subject to the condition that the credit is available on or before 30-6-94. As the credit is availed of after the specified date. i.e. 30-6-94, the same has to be disallowed. The Board's Circular referred to by the Ld. Advocates is not applicable as it was in respect of invoices issued under Notification No. 15/94. In view of this I do not find any infirmity in the impugned order which is upheld and the appeal is rejected.