2000 (2) TMI 591

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ocate, for the Respondent. [Order]. -  The Revenue has filed the above application under Section 35G(1) of the Central Excise Act, 1944 for reference of the following question of law stated to have arisen out of Tribunal's Final Order No. A-986/97-NB, dated 26-10-1997 [1998 (100) E.L.T. 362 (T)] : "Whether the Modvat credit accumulated in respect of inputs used in the manufacture of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....for the manufacture of exempt cycle chains in view of language of Rule 57C of the Central Excise Rules. Scrap generated during the manufacture of cycle chains became dutiable w.e.f. 1-3-1994 with the rescinding of Notification 171/88, dated 13-5-1988 Since Moped chains were being exported without payment of duty, Modvat credit availed in respect of inputs got accumulated in the RG 23A Part II. Whi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n inputs which were used for moped chains exported under bond, cannot be allowed to be used towards payment of duty on scrap generated during the manufacture of chains which are exempted from duty because cycle chains and scrap arising therefrom were not generated from processing of inputs separately accounted for, and on which no Modvat credit was allowed. The lower Appellate authority rejected t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (a) relate not only to such inputs which are used in the manufacture of declared final products cleared on payment of duty but also to any input which may be used for the manufacture of final product and to waste arising from processing of inputs. The learned DR highlights the aspect that cycle chains are exempt from payment of duty and no credit is admissible on inputs used for the manufactur....