1991 (4) TMI 238

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.... SDR, for the Respondent. [Order per : V.P. Gulati, Member (T)]. -  In these two appeals the issue involved is a common one and therefore they are taken up together for disposal today. 2. The short point that calls for our consideration is whether the appellants herein who are availing of the benefit of Notification No. 175/86 in respect of certain specified commodities can avail of ....

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....fter taking into account the Scheme of the Modvat and also the parameters of the Notification No. 175/86 have held as under: "There is no dispute that the appellants as a manufacturer are covered by the said Notification 175/86. The dispute is in regard to the applicability of the provisions contained in sub-clause (a)(i) as set out above. A reading of the said sub-clause (a)(i) would show that....

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.... and the purpose of both these is to reduce the total impact of duty in respect of finished goods. Under the Modvat scheme in case a finished goods paid duty the duty to the extent paid on inputs and used for those finished goods is given as credit for being utilised for payment of duty. Under Notification 175/86 the benefit is available to individual specified goods as set out in the Notification....

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....Sub-clause (a)(i), therefore, has to be read only in the context of the goods for which MODVAT credit is availed of and not for other goods. In view of this we hold that since the appellant had not availed of the benefit of MODVAT credit in respect of the inputs used in the goods other than those falling under Tariff Heading 3208, they should be given the full benefit of the exemption as would be ....