JUDGMENT
G.A. Brahma Deva
1. The issue relates to modvat credit on capital goods. The Asst. Commissioner disallowed modvat credit amounting to Rs. 25,094.14 on the ground that credit was wrongly availed on capital goods under Rule 57Q which were received in the factory before 16th March 95 in terms of provisions of Rule 57Q(2). It was observed that the credit was availed on invalid documents i.e. on miscellaneous challan no. 549/95 dated 22.4.95 issued by the Madras Customs House and not on the strength of triplicate copy of the bill of entry.
2. The party has filed an appeal against the said order before the Commissioner (Appeals) and became unsuccessful. Hence this appeal. Sh. Riyazzuddin, appearing for the appellant submitted that the party can avail credit based upon this type of challans and this was the practice before the Excise authorities and they were allowing credit based upon this type of challans except in this case. Further he submitted that in the case of Commissioner of Central Excise, Ahmedabad Vs. Chlochem Indus reported in 1998 (100) ELT 414 (T) it was held that certificate issued after the receipt of the inputs is an eligible document to avail modvat credit. Merely because the certificate were applied for at a later dated, by itself, no bar in taking the credit on such certificates, when they are validly issued and accordingly modvat can not be denied. The counsel submitted that party could not avail credit on triplicate copy of the bill of entry since it shows nil duty. He also submitted that cross reference of the earlier bill of entry is also endorsed in the relevant challan.
3. Heard D.R. She submitted that action of the department referring to the relevant portion in the impugned order as it was rightly observed by the Commissioner (Appeals) in his order, that in terms of Rule 57Q credit should not be allowed since the duty has been paid on the capital goods before 1.3.94, and documents issued.
4. I have carefully considered the matter and find that much case law developed on the point since the order passed by the authorities below. It was brought to my notice by the appellant counsel that the Tribunal has taken a view that party can avail the credit even based upon the certificate issued though certificate applied at a later date. it was also submitted on behalf of the party that it was the practice of the authorities below to allow credit based upon this type of challans, which is not done in the present case. In the fact and circumstances, the matter requires to be examined by the adjudicating authority. In the view i have taken, I am remanding the matter to the concerned adjudicating authority to examined the matter afresh in the light of development of case law on the point at issue and to pass an appropriate order in accordance with law on providing an opportunity to the party. Thus this appeal is disposed off in the above terms.
(Pronounced and dictated in the open court.)