2002 (1) TMI 1040

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....5,43,551.74 (Rupees fifteen lakh forty-three thousand five hundred and fifty-one and paise seventy-four) has been confirmed in Appeal No. E/R-486/2001, on the ground that with the introduction of Chapter Note 3 to Chapter 32 of the Central Excise Tariff with effect from 19-4-95 laying down an artificial definition of manufacture in respect of repacking of goods from bulk packs, the appellants became liable to pay duty on repacked goods. Inasmuch as the appellants did not pay the duty during the period from 19-4-95 to 25-5-95, the above duty has been confirmed by the Department. The appellants' submission, duly represented by Shri R.N. Bajoria, learned Senior Counsel, is to the effect that they filed a Writ Petition challenging the introduct....

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....ant period, they were not paying any duty on the repacked goods, no Modvat credit was being availed by them. He submits that this plea was taken up before the lower authorities, but not favoured with by them. 4. We have also heard the Departmental Representative. 5. The only submission made before us is as regards the extension of benefit of the Credit of Duty paid on the raw materials and inputs used in the manufacture of the repacked goods, on which the duty has been confirmed against the appellants. We agree with the learned Senior Advocate that in case of such subsequent demands, the Modvat credit on the inputs has to be allowed to the assessees and the final demand of duty would get neutralised to that extent. Inasmuch ....