Commissioner of Central Excise vs Venus Auto (P) Ltd.

R.K. Agrawal, J.—The Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi has referred the following question of law for opinion to this Court:

Whether Gate Passes issued prior to 1-4-1994 but endorsed after that date would fall under the coverage of entry No. 10 in the Table to the Notification No. 16/94-C.E. (N.T.A.), dated 30-3-1994 and would consequently become eligible for taking credit under the Modvat Scheme?

Briefly Stated the facts giving rise to the present reference are as follows:

The short point involved in the appeal is as to whether the gate passes issued on or before 31-3-1994 and endorsed after the said date can be said to be valid documents for taking credit under Notification No. 16/94-C.E., dated 30-3-1994. The Department alleged that such documents were not prescribed under Notification No. 16/94, dated 30-3-1996. The Commissioner (Appeals) set aside the Assistant Collector''s order and allowed the appeal of the assessee following the decision in the case of 1996 (64) ECR 1 25 Against this order, the Department went in appeal before the CEGAT and the Tribunal rejected the appeal of the Department following the earlier decision in the case of 1996 (64) ECR 1 25

We have heard Sri Subodh Kumar appearing for the Revenue and Sri Gopal Verma appearing on behalf of the respondent-assessee. We are proceeding to decide the present. Reference on the basis of the record available before us and on the basis of the arguments advanced by the Counsel for the parties.

We find that in the Notification No. 16/94-C.E., dated 30-3-1994 documents have been prescribed by the Central Government in exercise of powers conferred by Rule 57G of the Central Excise Rules, 1944. The said notification also provides that the Modvat credit on the basis of the documents mentioned in column (3) of the Table annexed to the notification can be availed of provided the documents have been issued before the 1st April, 1994 and the credit under the said rule has been taken on or before the 30th June, 1994. At column SI. No. 10 of column (3) the document specified is endorsed gate passes/subsidiary gate passes/certificates. Admittedly in the present case the respondent has taken Modvat credit on the basis of endorsed gate passes which were issued prior to 1st April, 1994 and the Modvat credit has been availed of on or before 30th June, 1994, thus, the Tribunal has rightly allowed Modvat credit on the basis of endorsed gate passes merely.

We may mention here that this Court in Central Excise Reference No. 33 of 2000 Commissioner of Central Excise, Meerut v. East India Udyog Ltd. decided on 18 April, 2007 and the Central Excise Reference No. 5/99 decided on 9-7-2009, has also taken the similar view.

Respectfully following the aforesaid decisions, we answer the question referred to us in the affirmative i.e. in favour of the assessee and against the Revenue. The reference is accordingly answered. However, there shall be no order as to costs.