TaxTMI 
TaxTMI 
1994 (12) TMI 198
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.... of modvat credit @ Rs. 6200/- PMT on copper bars and copper rods used as inputs in the manufacture of their final products viz. copper winding wires during the period 12-7-1986 to 31-3-1987. 2. We have heard Smt. Archana Wadhwa, learned Advocate for the appellants and Shri M.M. Mathur, learned JCDR for the Revenue. 3. The appellants herein are a public limited company engaged in the manufacture of copper winding wires classifiable under Heading No. 8544 of the Schedule to the Central Excise Tariff Act, 1985. The effective rate of duty on the said goods during the material period was 15% ad valorem as per serial No. 2 of Notification No. 69/86-C.E., dated 10-2-1986 as amended by Notification No. 163/86-C.E., dated 1-3-1986. The main r....
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....eep Sons Non-ferrous Rolling Mills (P) Ltd., Noida for further rolling and conversion into rods in their unit on job work basis. Simultaneously a book entry of receipt of the above goods was made in the RG 23-A Part-I wherein a remark was made that the appellants shall be availing modvat credit of additional duty of customs paid on the said inputs @ Rs. 3300/- PMT on receipt of copper rods from the said M/s. Deep Sons, Noida after rolling. M/s. Deep Sons, Noida, after rolling the bars, despatched the rods (classifiable under Tariff sub-heading 7403.19) to the appellant's factory, clearing the same from their unit after paying Central Excise duty @ Rs. 2900/- per metric tonne under Notification No. 149/86-C.E., dated 1-3-1986, which prescrib....
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....ants had established that they had paid the customs duty @ Rs. 3300/- PMT at the time of purchase of copper bars from MMTC, Ludhiana for which they were entitled to take credit under Rule 57A. The Collector (Appeals) however, held that the modvat credit was admissible only to the extent of Rs. 2900/- i.e. excise duty paid on the copper rods by M/s. Deep Sons, Noida and that the credit was not admissible in respect of additional customs duty of Rs. 3300/- PMT paid on copper bars purchased by the appellants from MMTC and sent for rolling to M/s. Deep Sons on job work basis. 7. There is no dispute that the job workers herein returned the copper wire bars sent to them by the appellants after converting them into copper rods, upon payment of ....
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....of goods Rate 1. 7401.00 & 7410.00 Unwrought copper in any form (refined or not, including blister copper and cement copper), including ingots, notched bars, wire bars, blocks, slabs, billets, shots, pellets, cathodes and cakes, castings not otherwise specified Nil 2. 7403.11 & 7403.19 Wrought bars and rods (including wire rods): (i) of brass (ii) other than of brass Nil 3. 7404.00 Sheets and circles produced in a rolling mill and cleared therefrom in an untrimmed condition Rs. 660/- per tonne. 4 7404.00 Wrought plates, sheets, blanks (Including circles) strips and foils of copper Rs. 1200/- per tonne. ....
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....s also no dispute that the imported copper bars purchased by the appellants from MMTC, Ludhiana had suffered additional duty to the extent of Rs. 3300/- PMT which amount is admissible as modvat credit under Rule 57A. We agree with the learned Counsel for the appellants that the benefit of credit of Rs. 3300/- PMT cannot be denied on the sole ground that the job workers had opted to pay duty on the rods rolled from the copper bars without availing modvat credit of Rs. 3300/-. There is further no dispute that in case duty had not been paid at the job workers' premises, the appellants would have been eligible to the benefit of modvat credit @ Rs. 6200/- PMT once the job worker pays the duty and takes the consequence of payment of duty, and the....