1996 (2) TMI 281

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.... of Notification 202/88. 2. Shri Lakshmikumaran, learned Counsel for the appellants pleaded that in terms of Notification 202/88 the applicants would be entitled to the benefit of the said Notification in respect of inputs used in case the applicants had not availed of the benefit of MODVAT Credit. He pleaded that the applicants are manufacturing steel tubes out of steel strips and some tubes manufactured are cleared on payment of duty while the others are cleared for consumption captively by availing the benefit of Exemption Notification 202/88. He pleaded that at the time when the inputs were received, it was difficult to identify the quantum of inputs that would be used in the manufacture of steel tubes for cycles which would be ....

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....versed prior to the clearance of the goods. In this background therefore, he pleaded there is substantial compliance with the requirements of the instructions of the Board inasmuch as the applicants have reversed the MODVAT Credit within a month after the clearance of the goods. He pleaded that in this view of the matter the demand is not maintainable in law and in this connection he referred us to the ruling of the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. v. CCE, Nagpur, reported in 1996 (81) E.L.T. 3 (S.C.). He fairly concedes that in this case while the issue involved was whether the assessee would be entitled to the benefit of MODVAT Credit when the Modvat Credit had been taken and reversed before clearance ....