1997 (7) TMI 303

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....Act, 1985, out of duty paid inputs on which Modvat credit has been taken and at Angul unit it manufactures Aluminium metal falling under Chapter 76 ibid out of calcined alumina manufactured at, and despatched from, Damanjodi. 2.  During the material period 20-4-1989 to 24-7-1989, the appellant despatched calcined alumina without payment of duty following the Chapter X procedure of the Central Excise Rules, 1944 in terms of Notification No. 217/86 dated 3-4-1986 (as amended). Modvat credit of duty paid on inputs for manufacture of Alumina (which in turn was utilised in manufacture of aluminium metal cleared on payment of duty) was not debited. Instead, the Modvat credit earned at Damanjodi was utilised towards payment of duty on alum....

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.... the scriptory work of clearing calcined alumina on payment of duty from Damanjodi and again taking credit thereof at Angul is avoided. This is the precise object of Notification No. 217/86. It is, therefore, prayed that if Revenue's contention is accepted that [calcined] alumina has been cleared without payment of duty under Notification 217/86-C.E. and, therefore, Modvat credit of duty paid on inputs used in [calcined] alumina needs to be reversed, then the appellant has no objection on paying duty on calcined alumina so that it can take credit again. In other words, the procedure followed by the appellant prior to or subsequent to the relevant period be allowed to be followed retrospectively (i.e. from 20-4-1989) since there is no loss o....