Punjab-Haryana High Court
Commissioner Of Central Excise vs M/S Stelko Strips Ltd. And Otherss on 11 March, 2010
Bench: Ashutosh Mohunta, Mehinder Singh Sullar
GCR No.8 of 1999 -1-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
GCR No.8 of 1999
DATE OF DECISION: March 11, 2010
COMMISSIONER OF CENTRAL EXCISE, CHD. ...PETITIONER
VERSUS
M/S STELKO STRIPS LTD. AND OTHERSS ...RESPONDENTS
CORAM: HON'BLE MR. JUSTICE ASHUTOSH MOHUNTA.
HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR.
PRESENT: MR. GURPREET SINGH, SR. STANDING COUNSEL
FOR THE PETITIONER.
MR. JAGMOHAN BANSAL, ADVOCATE FOR THE
RESPONDENTS.
ASHUTOSH MOHUNTA, J.(ORAL)
The Tribunal has referred the following question of law for adjudication by this Court:-
"Whether private challans other than the prescribed documents are valid for taking modvat credit under the Central Excise Rules, 1944?"
Mr. Gurpreet Singh, counsel for the Revenue has submitted that as per Rule 57G of Central Excise Rules, 1944 (for short 'the Rules'), documents have been specified on the basis of which Modvat credit can be availed-of and as private challans are not one of the documents which have been specified under Rule 57G of the Rules, therefore, Modvat credit is not allowable to the respondent on the basis of private challans.
This Court in Commissioner of Central Excise, Panchkula vs. GCR No.8 of 1999 -2- M/s Auto Spark Industries, Panchkula, CEC No.34 of 2004, decided on 11.7.2006, while relying on the issues in Commissioner of Central Excise Ahmedabad-I vs. Gujarat Medicraft Pvt. Ltd., and the Department's Circular dated 19.11.2001, has held that once duty payment is not disputed and it is found that documents are genuine and not fraudulent, then the manufacturer would be entitled to Modvat credit on duty paid inputs.
Similar view was taken in Commissioner of Central Excise, Ludhiana vs. Ralson India Ltd., reported as 2006(20) ELT 759 (P&H), wherein a Division Bench of this Court held that if the duty paid character of inputs and their receipt in manufacturer's factory and utilization for manufacturing a final product is not disputed, then credit cannot be denied. A similar view was also taken in Commissioner of Central Excise, Delhi- III, Gurgaon vs. Myron Electricals Private Limited, reported as 2007(207) ELT 664 (P&H).
In view of the above, the respondent-manufacturer would be entitled to claim Modvat credit on the strength of private challans, as the same were not found to be fake and there was a proper certification that duty had been paid.
The reference is accordingly answered in favour of the assessee and against the Revenue.
(ASHUTOSH MOHUNTA)
JUDGE
March 11, 2010 (MEHINDER SINGH SULLAR)
Gulati JUDGE