1999 (11) TMI 224

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and in cases where raw material was exempted from payment of duty Modvat credit under Rule 57A of Central Excise Rules can be availed. 2. Shri M.V. Ravindran, the ld. Advocate submitted that the assessee company is manufacturer of floor coverings falling under Chapter 39 of the erstwhile Central Excise Tariff Act. They used indigenous raw material in respect of which Modvat credit is availed of. In addition to that they are also importing raw material under advance licence and the duty is exempted under the notification. After promulgation of notification they filed the classification list No. 283/88-89 in March, 1988 claiming the benefit of Notification 58/88 (Serial No. 24) in respect of waste and scrap of floor coverings. In 1989 t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he decisions relied upon by the ld. Advocate are not applicable. He further mentioned that the DEEC notification is a conditional notification and the exemption from the payment of duty is subject to the conditions in the notification and therefore it is different from general notification granting exemption from payment of duty. Regarding availment of Modvat credit he relied upon the decision of Tribunal in Atic Industries Ltd v. Collector of Central Excise - 1987 (30) E.L.T. 741 wherein it was held that once proforma credit under Rule 56A of the Central Excise Rules has been availed of goods will not have the duty paid character. Regarding applicability of the extended period of limitation he reiterated the grounds as contained in appeal ....