2000 (9) TMI 375

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....vocate, for the Respondents. [Order]. - Garware Plastics and Polyester Pvt. Ltd. the respondent to this application manufactures in its factory at Valuj polyester chips. It cleared major part of the polyester chips without payment of duty under Notification 217/86 by following the procedure description in Chapter 10 of the Central Excise rules to its factory at Chikalthana. At this factory, ....

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....e Collector (Appeals) found that the decision of the Tribunal in Bajaj Tempo Ltd. v. CCE, Pune 1994 (69) E.L.T. 122 was to the effect that where goods are cleared by an assessee, availed of Notification 217/86 with respect to another factory belonging to it and therefore utilised as provided in notification, the provisions of Chapter 10 the credit cannot be denied. The Tribunal reasoned that Notif....

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....m say that the final product manufactured at the Valuj factory is polyester film. The Collector (Appeals) has said that the final product manufactured at the factory at Valuj and cleared at Chikalthana is polyester chips. Both sides are agreed that it is polyester chips that are manufactured at Valuj for conversion there into films. Both sides are also agreed that in reference to the proposal in t....

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....umstances of the case, Rule 57C has to be strictly construed disregarding the fact that Notification No. 217/86 is essentially based on Modvat scheme and the amendment carried out by way of Notification 97/89 was to facilitate such removals from one factory to another of the same manufacturer without payment of duty, so long as it is ensured that the ultimate final product pay duty? (iii) ....