2002 (9) TMI 744

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....the Respondent. [Order]. - The appellants were engaged in the manufacture of excisable goods falling under T.H. 85.29, 85.40 and 85.04. During the period July to Sept., 1995, they cleared certain inputs (useable for the manufacture of VHF tuners, one of their final products) on payment of duty by way of reversal of credit, to another company, M/s. Daishin Denken India Pvt. Ltd., who were als....

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.... the above amount under Rule 57I. The department's proposal was contested by the party. The jurisdictional Asstt. Commissioner, who adjudicated the dispute, confirmed the demand of duty on the ground that their own invoices whereunder the goods had originally been cleared by them to their buyer and returned by the latter were not valid duty-paying documents under Rule 57G(2) for the purpose of Mod....

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....ultant submits that there is nothing in Rule 57F which prohibits availment of Modvat credit on the inputs on the strength of invoices issued under Sub-rule (1) of the Rule. Ld. Consultant further relies on the Board's Circular No. 282/116/96-CX., dated 30-12-96, which clarified that the Modvat credit of the duty paid on inputs cleared by a manufacturer under cover of Rule 52A invoice could be take....

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.... was the substantive provision at the material time for availment of Modvat credit on inputs. That provision permitted a manufacturer of final product to take Modvat credit of the duty paid on inputs, on the strength of invoice issued under Rules 52A by the input-manufacturer. In the instant case, the appellants had cleared the inputs originally on payment of duty under Rule 52A invoice as if they....