M/S. Alcobex Metal Ltd. Vs. C.C.E., Jaipur - Court Judgment

Excerpt:

.....of mistake in final order o. 2056/2000-nb(s) dated 28.8.2000.3. the contention of the revenue is that the tribunal had wrongly held that manufacturer can alvail the benefit of modvat credit on defective final products, which are returned to the manufacturer and the tribunal has erred in allowing the modvat credit on the defective final products, which are returned to the manufacturer as the invoices, on which the credit had been taken, were not the proper documents, as these were issued by the manufacturers themselves.4. i find that the power to rectify the mistake is limited and this power is restricted to rectify the mistake apparent on record.5. the main ground taken in the application is that the manufacturer had availed the credit on defective goods on their own documents. this issue was not pressed by the revenue at the time of final hearing of the appeal. the hon'ble supreme court in the case of t.s. balram, income-tax officer vs volkar bros. and ors. reported in air 1971 (sc) 2204 held that a mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there.....

Judgment:

1. Revenue filed this application for rectification of mistake in Final Order o. 2056/2000-NB(S) dated 28.8.2000.

3. The contention of the revenue is that the Tribunal had wrongly held that manufacturer can alvail the benefit of MODVAT Credit on defective final products, which are returned to the manufacturer and the Tribunal has erred in allowing the MODVAT Credit on the defective final products, which are returned to the manufacturer as the invoices, on which the credit had been taken, were not the proper documents, as these were issued by the manufacturers themselves.

4. I find that the power to rectify the mistake is limited and this power is restricted to rectify the mistake apparent on record.

5. The main ground taken in the application is that the manufacturer had availed the credit on defective goods on their own documents. This issue was not pressed by the revenue at the time of final hearing of the appeal. The Hon'ble Supreme Court in the case of T.S. Balram, Income-Tax Officer vs Volkar Bros. and Ors. reported in AIR 1971 (SC) 2204 held that a mistake apparent on the record must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. A decision on debatable point of law is not a mistake apparent on the record.

6. In view of the above decision of the Hon'ble Supreme Court, I find no merit in the application and the same is rejected.