1997 (3) TMI 529

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....c films and waste or scrap is generated as a by-product. The scrap is processed and converted into plastic granules and again used in the manufacture of plastic films. Scrap was being cleared at nil rate of duty under items 35 and 36 of the Table to exemption Notification No. 53/88. Appellant contended that under items 35 and 36 of the notification, the exemption of duty in excess of 25% would apply to film manufactured out of the granules obtained by reprocessing the scrap. Appellant accordingly having cleared plastic film and demand was issued alleging that no duty had been paid on the scrap or reprocessed granules and therefore the condition stipulated in column 5 of the notification, namely that inputs should have paid duty was not sati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n the two member decision of this Tribunal in CCE, Bangalore v. Gunnam Subbarao Investments (P) Ltd. - 1996 (17) RLT 771 (CEGAT-SZB). The facts of the case are identical to the facts of the present case also. The Bench observed as follows : "Thus a deemed fiction has been created to treat the goods in respect of which Modvat credit was taken as if the same were manufactured in the respondents factory.... Since the duty burden has been lifted from the goods, this condition therefore and the purpose for which the notification has been issued cannot be taken to have been complied with." 6. We find the above decision not in consonance with the observations of the Larger Bench of the Tribunal in Dai Ichi Karkaria Ltd. v. Collector of Cent....