Customs, Excise and Gold Tribunal - Mumbai
M/S Karan Fibres And Fabrics Ltd. vs Commissioner Of Central Excise And ... on 4 July, 2001
ORDER J.H. Joglekar, Member (T)
1. On hearing both sides, the appeal itself was taken up for final disposal on granting waiver of pre-deposit of duty of Rs.24,29,552/-.
2. Modvat credit taken on the strength of invoices issued by M/s. Karan Fibres and Fabrics Ltd. and M/s. Excell Chem who were the dealers, had been denied on the ground that the dealers had not registered themselves with the excise department. Against this decision of the Assistant Commissioner, the assessee field an appeal. The Commissioner (Appeals) directed them to pre-deposit 50% of the contested duty. The assessees sought reconsideration of the orders but the Commissioner dismissed the appeal for their failure to comply with the relevant provisions. Hence the present appeal.
3. It is shown on records that Karan Fibres and Fabrics Ltd. were registered with the department as dealers on 14.8.1994. In terms of the prevalent instructions the invoices by unregistered dealers were also acceptable provided the dealers subsequently got registered upto 31.12.1994. It appears that the learned Commissioner (Appeals) failed to see the copy of the documents placed before him. As regards the other dealers, Shri Mehta submits that it is a small amount and they have no documents to show whether they were registered or not. In this situation, we allow this appeal and remand the proceedings back to the Commissioner (Appeals). He shall hear the appellants without insisting on any pre-deposit, and on being satisfied that Karan Fibres and Fabrics Ltd. were the registered dealers, proceed to pass appropriate orders.
(Dictated in Court)