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CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, MADRAS
V.P. Gulati, T.P. Nambiar, JJ.
Finecore Cables (P.) Ltd. -Appellant
Versus
Commissioner of Central Excise, Bangalore -Respondent
Order No. 2154/97, E/Stay/847/97 A.No. E/1697/Md, 2154 of 1997, 847 of 1997, 1697 of 1997
Decided On : 20-08-1997
Indulal Shah,Rama Rao
Per Shri T.P. Nambiar :
The present appeal is directed against the order passed by the CCE (A), Bangalore. In terms of that order, he conformed the order of the AC in denying the MODVAT Credit to the appellants. The appellants in the present case availed of the benefit of MODVAT Credit on the strength of original invoice issued by the depot of M/s. Hindustan Copper Limited (HCL) which is a Government of India Undertaking. The case of the appellants is that during the relevant time, August to October 94, any copy of the invoice/challan was valid for availment of MODVAT Credit because neither in rule 57G nor in the Notification No. 32/92 CE (NT) dated and 33/94 CE (NT) both dated 4.7.94, there was any stipulation that duplicate invoice issued by the concerned would be relevant for the purpose of taking the benefit of MODVAT Credit and denial of MODVAT Credit to them is not in accordance with law.
2. Shri Indulal Shah, learned Consultant for the appellants contended before us that there was an amendment to Rule 57H in terms of Notification 64/94 CE (NT) dated 7.4.94. In order to appreciate the contention of the learned Consultant we reproduce the amendment which is as follows :
Modvat Rule 57H - Amendment
[Amend at page 2.72 of 15th Edition and page 2.67 of 16th & 17th Editions of Central Excise Manual 1994-95]
In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944, namely :-
1. (1) These rules may be called the Central Excise (Amendment) Rules, 1994.
(2) They shall come into force on the date of their publication in the official Gazette.
In the Central Excise Rules, 1944, in rule 57H in sub-rule (1), -
(i) after the words "received by a manufacturer" and before the words "immediately before obtaining the dated acknowledgement", the following shall be inserted, namely :-
"under any invoice or under any document may be prescribed by the Central Board of Excise and Customs (constituted under the Central Board of Revenue Act, 1963 (54 of 1963)"
(ii) after the word "before" and before the word "obtaining", the word "or after", shall be inserted;
(iii) the first proviso shall be omitted;
(iv) in second proviso the word "further" shall be omitted.
[Notification No. 64/94-C.E. (N.T.) dated 7.11.1994]
Relying on the above said amendment the learned Consultant stated that MODVAT Credit could be taken on any invoice or any document as may be prescribed by the Central Board of Excise & Customs.
3. In this connection he drew our attention to the Circular No. 76/76/94-CX dated 6.11.94 issued in pursuance of the above said amendment of Rule 57H and after taking note of that amendment the above said Circular was issued by the Central Board of Excise & Customs. In order to appreciate the contention of the Consultant, we reproduce below the Circular.
Modvat - Transitional provisions - Amendment to Rule 57H - Clarification
Refer to Notification No. 64/94-C.E. (N.T.), dated 7th November, 1994 amending Rule 57H.
2. Rule 57H of the Central Excise Rules, 1944 deals with transitional provisions. The present amendment to the said rule, inter alia, permits acceptance of "any invoice" or "any document" as may be prescribed by the Central Board of Excise and Customs as valid document under Rule 57G.
3. The present amendment to Rule 57H has been made to remove the difficulties arising out of the budgetary changes in 1994-95 relating to acceptance of "invoice" as proper document for the purpose of Modvat credit and issue of Notifications such as Notification No. 21/94-C.E. (N.T.), dated 12.5.1994 and Notification No. 32/94-C.E. (N.T.), dated 4.7.1994. The Assistant Collector, at his discretion could accept the invoice issued by the person referred to in Rule 52A - Notification No. 15/94-C.E. (N.T.) and Notification No. 21/94-C.E. (N.T.).
4. Now therefore by virtue of powers conferred by Rule 57H of the Central Excise Rules
