Eastern Steel Industries Vs. Commissioner of Central Excise, - Court Judgment

Excerpt:

.....thereafter are admissible modvatable documents. i also find that on a reference application of hon'ble high court of gujarat in the case of c.c.e., ahmedabad v. gujarat medicraft pvt. ltd. - 2001 (42) rlt 475 (guj) has held that gate passes issued before 1.4.94 and endorsed between 1.4.94 and 30.6.94 are admissible modvatable documents.inasmuch as the sail's invoice was equivalent to gate pass prior to 1.4.94, by applying the ratio of the hon'ble gujarat high court decision, i hold that the said endorsed invoices would be a valid document for the purpose of modvat credit. accordingly, i set aside the impugned order and allow the appeal with consequential relief to the appellant(s). stay petition also gets disposed of.

Judgment:

1. After dispensing with the condition of predeposit of duty amount of Rs. 36,052/- (rupees thirty six thousand fifty two only) and personal penalty of Rs. 3,000/- (rupees three thousand only) I take up the appeal itself with the consent of both sides.

2. It is seen that Modvat credit was availed by the appellants on the basis of endorsed challan-cum-invoices issued by Steel Authority of India Ltd. on 25.3.94. The objection of the Revenue is that the said challan-cum-invoices of M/s SAIL issued prior to 1.4.94 and endorsed after 1.4.94 is not proper modvatable document. However after hearing both sides I find that the said challan-cum-invoices issued by M/s SAIL prior to introduction of invoice system w.e.f. 1.4.94 were being considered at par with the gate passes. The Tribunal in the case of Moosa Haji Patrawala Pvt. Ltd. v. C.C.E., Bombay-I - 1996 (30) RLT 350 has held that gate passes issued prior to 1.4.94 and endorsed thereafter are admissible modvatable documents. I also find that on a reference application of Hon'ble High Court of Gujarat in the case of C.C.E., Ahmedabad v. Gujarat Medicraft Pvt. Ltd. - 2001 (42) RLT 475 (Guj) has held that gate passes issued before 1.4.94 and endorsed between 1.4.94 and 30.6.94 are admissible modvatable documents.

Inasmuch as the SAIL's invoice was equivalent to gate pass prior to 1.4.94, by applying the ratio of the Hon'ble Gujarat High Court decision, I hold that the said endorsed invoices would be a valid document for the purpose of Modvat credit. Accordingly, I set aside the impugned order and allow the appeal with consequential relief to the appellant(s). Stay Petition also gets disposed of.