ORDER
K.D. Mankar, Member (T)
1. In the instant appeal the dispute relates to denial of credit of duty paid on the capital goods on the basis of duty paid by the supplier on the “Auto clave” (capital goods) which were cleared from the premises of the supplier after carrying out repairs. In the order-in-original it has been held that the invoice issued by a “repairer” is not a valid duty-paying document. Consequently the duty demand of Rs. 48,590/- was confined against the appellants and penalty of Rs. 4,000/- imposed. On appeal, Commissioner (Appeals) set aside the penalty but confirmed the denial of modvat. The order of the Commissioner (Appeals) is under challenge in the instant appeal.
2. Heard both sides.
3. The short issue involved in this appeal is as to whether or not the duty paid on the “Autoclave” which was admittedly a repaired unit could be permitted. It is obvious that the supplier had cleared the said machine on payment of duty. It is therefore clear that the supplier was a manufacturer of the said goods as there is no excise duty on someone who undertakes only a repairing job. The Central Excise authorities at the supplier’s end alone can raise dispute about the correctness or otherwise of the duty paid on the supplied machine. No such evidence is produced by the revenue to say that the duty paid on the machine is disputed by such an authority. Consequently, the said payment of duty manifested on the invoice has to be accepted as payment of proper duty and the “supplier” is also required to be accepted as the “manufacturer”. The manufacturer’s invoice being an admissible document, the credit could not be denied, as attempted by the lower authorities. In this connection the judgments of the Tribunal in the following cases are cited which held the same position.
(1) CCE, Chandigarh v. Industrial Cables 1999(108) ELT (Tribunal)
(2) Bharat Aluminium Co. Ltd. v. CCE. Raipur 2002(102) ECR 848 (Tribunal)
(3) Eveready Industries Ltd. v. CCE. Allahabad 1998(103) ELT 672 (Tribunal).
4. Accordingly the appeal succeeds and the same is allowed with consequential relief in accordance with the law.
(Dictated in Court)