1996 (9) TMI 406

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....DR, for the Appellant. Shri S.L. Chopra, Advocate, for the Respondents. [Order per : K.S. Venkataramani, Member (T)]. - All these appeals filed by the Commissioner of Central Excise, Chandigarh against the Common Order of the Commissioner of Central Excise (Appeals), Chandigarh involve three issues relating to availment of Modvat credit. Firstly, the Assistant Commissioner has taken objec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of deemed credit it not available to inputs which are clearly recognisable as non-duty paid. Thirdly, the Assistant Commissioner has denied Modvat on foundry fluxes chemicals used in the preparation of moulds on the ground that these are not used in or in relation to the manufacture of their final product which are valves and cocks. On the first issue the Commissioner (Appeals) directed the Asstt.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tings. The ratio is directly applicable, therefore, we hold that the denial of Modvat of foundry fluxes is bad in law. The Respondents have rightly been held eligible for Modvat credit on these inputs. On the next issue relating to the deemed credit, again the matter is covered by a Larger Bench decision in the case of Machine Builders v. Collector of Central Excise, Bolpur, reported in 1996 (83) ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... has taken effect. In the present case it has not even been indicated as to under what notification the Department holds the inputs have been cleared duty free by the manufacturer-supplier of input from their factory. Therefore, we hold that the denial of the deemed credit can be lawful only on the Department establishing the clearance of the inputs in question from the factory of the manufacturer....