2004 (5) TMI 420 - AT - Central Excise

Court denies Modvat credit for HFHSD, citing exclusion in notification despite distinct properties and IOC certificate.

The court upheld the decision of the lower authorities, denying Modvat credit eligibility for High Flash High-Speed Diesel (HFHSD) based on the exclusion ... High Flash HSD (HFHSD) - Cenvat/Modvat Issues:Classification of High Flash High-Speed Diesel (HFHSD) for Modvat credit eligibility.Analysis:The appellant contended that HFHSD is distinct from HSD and should be eligible for Modvat credit based on properties and a certificate from IOC. However, the lower authorities found no difference in classification, citing a previous case and the exclusion of HSD from Modvat credit by Notification No. 5/94. The appellant argued that the previous case did not apply as it focused on HSD, not HFHSD.After reviewing arguments and case law, the judge concluded that the previous case might not directly apply. However, since the notification excluded HSD and did not specify HFHSD for Modvat credit, the judge upheld the lower authorities' decision. The judge emphasized that the notification clearly covered Heading 2710 and did not extend Modvat credit to HFHSD. Consequently, the appeal was dismissed for lack of merit.