1997 (6) TMI 97

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....i S.V. Singh, JDR, for the Respondent. [Order per : K.S. Venkataramani, Member (T)]. - The appellants manufacture electric fans and parts thereof falling under Ch. 84 of Central Excise Tariff Act, 1985. Proceedings were initiated against the appellants for wrongly availing of deemed Modvat credit under Rule 57G(2) on aluminium alloy ingots which they received from the suppliers. The departme....

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....ngots are processors and they only do the conversion and this operation carried out by the suppliers does not amount to manufacture at all. The ld. counsel relied upon the Larger Bench decision of the Tribunal in the case of Machine Builders - 1996 (83) E.L.T. 576. The Larger Bench has held that where the goods are subject to conditional exemption notification, the department will have to carry ou....

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....re laid down by the Larger Bench is necessary in the facts of this case and accordingly the denial of deemed Modvat credit is justified. 4. On a careful consideration of the submissions we find substance in the submission made by the ld. DR A perusal of the show cause notice in this case shows that the challans under which input material was received from the suppliers by the appellants co....

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.... decision in the particular appeal considered by that Bench, the endorsement on the challan as we find in this case was absent. The deemed credit was denied merely by taking recourse to the change in the wording of the proviso in the deemed credit order dated 20-5-1988. In these circumstances, in the facts of this case, we find that the denial of deemed credit is well-founded and needs no modifica....