1991 (4) TMI 238 - AT - Central Excise

Appellate Tribunal allows Modvat credit beyond Notification 175/86 for distinct inputs

The Appellate Tribunal CEGAT, MADRAS, ruled that appellants benefiting from Notification No. 175/86 could claim Modvat credit for a different commodity, ... Modvat credit and S.S.I. exemption Issues involved: Interpretation of Notification No. 175/86 and eligibility for Modvat credit.In the judgment by the Appellate Tribunal CEGAT, MADRAS, the issue at hand was whether the appellants, benefiting from Notification No. 175/86 for certain commodities, could also claim Modvat credit for a different commodity. The Tribunal considered the instructions from the Ministry and a previous decision, emphasizing the need to verify if the inputs for which Modvat credit is claimed differ from those used in commodities under Notification 175/86. The Tribunal highlighted that the benefit of Modvat credit can be availed as long as the inputs and finished products for which the credit is claimed are distinct from those under the notification. Due to lack of verification by lower authorities, the matter was remanded for proper assessment, affirming that there is no impediment to claiming Modvat credit alongside benefits under Notification 175/86 once specific conditions are met.