TaxTMI 
TaxTMI 
1998 (11) TMI 290
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....ted Aluminium Extrusions into Aluminium Section amounts to manufacture". 2. Shri N. Mookherjee, ld. Advocate arguing on the application submitted that the applicants are engaged in the manufacture of Aluminium Extruded Sections, classifiable under Chapter 76 of the CETA, 1985 and are working under Modvat Scheme, after filing due declaration and after observing the requisite procedure envisaged by the Modvat provisions. During the period December, 1992 to March 1993, the final product i.e. Aluminium Extrusions sent by the appellants to their customers were rejected who sent back the same to the applicants by endorsing gate pass in favour of the applicants under the cover of which they were originally sent by the applicants. On the basi....
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....ses has held that Modvat benefit of duty paid on the rejected final product and used as input can be availed. Reliance was placed on the following decisions : Alcobex Metals Ltd. v. C.C.E. - 1993 (68) E.L.T. 146 (Tribunal). Fimco Elecon (India) Ltd. v. C.C.E. - 1991 (56) E.L.T. 654 (Tribunal). Nangalwala Auto Mfg. (P) Ltd. v. C.C.E., Jaipur - 1996 (16) RLT 319 (CEGAT -NB). Mullard Tubes Ltd. v. C.C.E., Chandigarh - 1994 (74) E.L.T. 342 (Tribunal). Udasee Stamping Pvt. Ltd. v. C.C.E., Jaipur - 1997 (93) E.L.T. 283 (Tribunal). 3. Countering the arguments, the ld. SDR Shri T.P. Kumar submitted that the Tribunal after considering the decision in the case of Alcobex Metal Ltd. has chosen not to rely upon the same and to take different....
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....titled to take the credit of duty paid on the aluminium extrusions taken on the first clearance of the goods when the same were rejected and returned to the applicants. The rejected aluminium extrusions have been used by the applicants as input for the manufacture of prime quality aluminium sections. Whereas the Tribunal in the instant case has held that such a process does not amount to manufacture and applicant should have followed the procedure of Rules 173H or 173L and the applicants' contention is that they were entitled to Modvat credit of duty as held by the various judgments. The decisions given by the various Benches of the Tribunal relied upon by the applicants are in their favour whereas the decisions relied upon by the ld. SDR a....