1988 (8) TMI 236

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....re entitled to MODVAT credit on intermediate products manufactured by them. Since the issue involved in the appeal itself lies in a short compass and is to be taken up for disposal to-day, the Stay Application is dismissed. 2. Appeal No. E/318/88/MAS. - This appeal has been preferred by the Collector of Central Excise, Belgaum against the impugned order of the Collector of Appeals referred to above. The respondents manufacture Aluminium. They filed declaration under Rule 57G of the Central Excise Rules opting to work under the MODVAT Scheme. They declared recovered Cryolite and Soderburg paste as inputs for the final product, namely, Calcined Alumina. The inputs namely, Cryolite and Sunderburg pasts, are manufactured by them and captively ....

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....ken by the Collector (Appeals) is erroneous and the Assistant Collector's order should be restored. 4. Shri N. Mukherjee, the learned Counsel appearing for the respondents contended that the material had been duly declared as inputs under Rule 57-G and had been so accepted by the Department. The respondents had paid duty on them and thereafter they had availed of MODVAT credit. The materials were also covered by Notification specifying them as inputs eligible for MODVAT credit. In such circumstances, the reasoning of the Collector (Appeals) is well-founded and needs no modifications. 5. The submissions made by the learned S.D.R. and the learned Counsel have been carefully considered. Rule 57-A relates to applicability of MODVAT credit. It....