Upholding the excise tribunal’s view, the Supreme Court said that KCP Ltd, engaged in setting up machinery for sugar and cement factories, is not entitled to Modvat credit as it did not pay any excise duty on the sugar plant set up by it in Vietnam. It said that for availing such benefit, two conditions need to be satisfied: (i) On the raw materials, i.e. on the inputs, the manufacturer must have paid duty and such raw material must have been used in the process of manufacturing the final product in his factory or premises, and (ii) excise duty must have been levied on the final product.
In this case, M/s KCP Ltd vs Commissioner of Central Excise, the firm had entered into a contract with M/s Vina Sugars for supply and installation of a sugar plant in Vietnam. For the purpose, it manufactured certain machines in its own factory and also purchased some from the market and shipped them together to Vietnam. The assessee then availed the Modvat credit declaring them as capital goods. However the department rejected the claim saying the purchased goods were used in its factory premises for manufacture of the final product and the role of the assessee was merely like a trader who exported the goods purchased from dealers exactly in the same condition along with the machinery manufactured by it for setting up a sugar plant in a foreign country.
Resolving the conflicting views in cheque bounce cases, a larger bench of the Supreme Court has held that a criminal complaint filed by a person who holds a power of attorney (PoA) on behalf of a complainant “is perfectly legal and competent.” It laid down that (i) a complaint about a bounced cheque can be filed by a power of attorney holder, and (ii) the PoA holder can depose and verify on oath before the court in order to prove the contents of the complaint if he had witnessed the transaction as an agent of the payee/holder in due course or possesses due knowledge regarding the transactions. It clarified that the attorney holder cannot file a cheque bounce case under his own name, as if he was the complainant, but he can initiate criminal proceedings on behalf of his principal. The top court further said that the functions under the general PoA cannot be delegated to another person without specific clause permitting the