2001 (1) TMI 154 - AT - Central Excise

Appellate tribunal grants choice on Ingot Mould duty: exemption or payment allowed.

The appellate tribunal ruled in favor of the appellants, stating that they have the choice to either claim exemption or pay duty on Ingot Mould, based on ... Option to avail exemption notification - payment of duty as alternative to exemption - Modvat credit on inputs used in manufacture of exempt goods - captively consumed goodsOption to avail exemption notification - Modvat credit on inputs used in manufacture of exempt goods - payment of duty as alternative to exemption - captively consumed goods - Assessee has the option to forego exemption under Notification No. 46/94-C.E. and instead pay duty on captively consumed Ingot Moulds while availing Modvat credit on inputs. - HELD THAT: - The Tribunal held that the question is no longer res integra and is covered by earlier decisions of the Tribunal which establish that an assessee may elect either to avail an exemption notification or to pay duty on goods otherwise exempt and claim Modvat credit on inputs used in the manufacture of such goods. The Tribunal recorded that these precedents include the decision in C.C.Ex., Calcutta v. S.A.I.L., which noted the Bhubaneswar Collectorate Trade Notice clarifying that Modvat credit is admissible where the assessee chooses to pay duty on goods fully exempt when used in manufacture of the final product. Applying those authorities, the Tribunal concluded that the appellants could lawfully choose to pay duty on the Ingot Moulds consumed captively and claim the Modvat credit for inputs, rather than being compelled to avail the exemption notification.Impugned order set aside; appeal allowed and consequential reliefs granted to the appellants.Final Conclusion: The Tribunal allowed the appeal, holding that the assessee may elect to pay duty on captively consumed Ingot Moulds and avail Modvat credit on inputs instead of claiming exemption under Notification No. 46/94-C.E., and granted consequential reliefs. The appellate tribunal decided that appellants have the option to avail exemption or pay duty on Ingot Mould. Previous cases support the assessee's choice to avail Modvat credit. The tribunal allowed the appeal in favor of the appellants.