2003 (2) TMI 362

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.... submitted that the Respondents manufacture polyethylene Terepthalate (Polyster Polymer Chips) and avail of Modvat Credit of the duty paid on the inputs under Rule 57A of the Central Excise Rules, 1944; that a show cause notice dated 1-1-1996 was issued to them for recovering Modvat Credit wrongly taken by them and for imposing penalty as they had cleared their final product Polyster Polymer Chips at nil rate of duty against C.T.-2 Certificates issued under Notification No. 49/94-C.E. (N.T.); that the Asst. Commissioner under Adjudication Order No. 61/2000, dated 13-10-2000 allowed the Modvat Credit on the ground that the restriction of non-availment of Modvat Credit on inputs used in export goods envisaged under Rule 57-C is not applicable....

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....e as the final goods removed by the Respondents are neither exempted from payment of whole of the duty leviable thereon nor are chargeable to nil rate of duty as the goods are cleared in terms of Notification No. 49/94-C.E. (NT) which is not an exemption notification; that the said notification has been issued under the provisions of Rule 13 of the Central Excise Rules, 1944 and not under Section 5A of the Central Excise Act. Reliance has been placed on the decision in the case of High-Tech Carbon v. CCE, Allahabad, [2000 (137) E.L.T. 90 (T) = 2001 (47) RLT 803 (CEGAT)] and CCE, Ahmedabad v. Omkar Textile, [2002 (148) E.L.T. 461 (T) = 2002 (51) RLT 988 (CEGAT)]. 4. We have considered the submissions of both the sides. Rule 57-C of the....