TaxTMI 
TaxTMI 
1992 (12) TMI 148
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....hich the Assistant Collector relying on Circular No. 127/88 dated 8-9-1988 has held that the respondent M/s. Gwalior Air Products, Banmore, could avail full exemption on one product and modvat credit on the other product under Notification 175/86 simultaneously. 2. In brief, the facts of the case here are that the respondents M/s. Gwalior Air Products Ltd., Gwalior are engaged in the manufacture of oxygen gas and acetylene gas. They availed modvat credit on acetylene gas and exemption under Notification 175/86 on oxygen gas after filing due declaration for both. Although a show cause notice dated 3-4-1990 was issued to the assessee proposing to recover Rs. 39,226.18 towards duty payable on account of wrong availment of Notification 175/8....
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....ducts which are chargeable to Central Excise duty. (ii) In spite of the modvat rules, notification does not provide such facility. (iii) The assessee is manufacturer of oxygen gas and acetylene gas both specified final products of Notification 175/86. (iv) As per Notification 175/86 there can be only two types of manufacturers i.e. either credit can be availed or exemption can be availed not both. (v) The provisions of Notification a(i) & (ii) are mutually exclusive provisions and thus both benefits cannot be taken simultaneously. (vi) Notification 175/86, is applicable in its totality. It is not possible that a manufacturer will avail full exemption on o....
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....irty lakhs- (i) In a case where a manufacturer avails of the credit of the duty paid on inputs used in the manufacture of the specified goods cleared for home consumption under Rule 57A of the said Rules, from so much of the duty of excise leviable thereon which is specified in the said schedule (read with any relevant notification issued under sub-rule (1) of Rule 8 of the said Rules and in force for the time being) as is equivalent to the amount calculated at the rate of 10% ad valorem: (ii) In any other case from the whole of the duty of excise leviable thereon: Provided that the aggregate value of clearances of the specified goods under sub-clause (ii) of this clause in respect of any one heading No. of the said Schedule,....
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....ory of specified goods his eligibility for total exemption in respect of other specified goods in respect of which no MODVAT Credit is availed would be affected and all other specified goods also will come within the purview of sub-clause (a)(i)of the Notification. In our view, taking into consideration the provision of the Modvat scheme Notification 175/86, there is no doubt that the concessions envisaged under these are in respect of finished goods cleared from a factory and which are chargeable to duty 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 the duty to the extent paid on inputs and used for those finished goods, is given as cr....