2003 (1) TMI 564

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....nd blended yarn which were also final products manufactured by them. Revenue has come in appeal against this order of the Commissioner (Appeals) on the ground that the assessee/respondents are not eligible to take credit of duty, that is to say, AED (T) paid on imported inputs that is Lycra Spandex yarn as the final product since the Spandex Yarn is not leviable with AED (T) and the assessee has to reverse the credit to the tune of Rs. 75,083/- for the period from May, 99 to August, 1999. The Revenue further contended that the assessee had imported Lycra Spandex yarn for the manufacture of Spandex yarn and has been taking the credit, that is to say, BED and AED (T) thereon. The assessee/respondent had cleared the final product namely Spande....

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.... of duty of excise on any of the following, namely, - (a) on any of the final products in the manufacture of which such inputs are intended to be used in accordance with the declaration filed under Rule 57G; or (b) on the waste, if any, arising in the course of manufacture of the final products; or (c) on the inputs themselves if such inputs are removed as such under sub-rule (3)." He, therefore, submitted that the ld. Commissioner has in Para 4 of the findings has dealt with the whole issue wherein he has held that it is not necessary that credit of a particular duty should be utilised for payment of that duty only as there is no one to one correlation for availing the Modvat credit which could be utilised in respect of any of the fina....