2004 (4) TMI 453

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....der]. -  The appeal of the appellants is directed against the order-in-appeal passed by the Commissioner Central Excise (Appeals) whereunder the Modvat credit denied to them by the Deputy Commissioner was confirmed. 2. It is revealed that the appellants were availing Modvat credit on furnace oil as inputs in terms of Rule 57A. This credit is allowable whether the input is used dire....

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....inal product is exempt, the taking of credit on furnace oil was not permissible. Hence, the duty demand was confirmed by the Deputy Commissioner, which has been also upheld by the Commissioner (Appeals). Hence the instant appeal. 3. Heard both sides. 4  The appellant's case is that in respect of inputs used as fuels, by virtue of sub-rule (3) of Rule 57C which says that provisions ....

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....le 13." 5.  There can be no disagreement with the appellants that sub-rule (2) of Rule 57C does not apply to fuels. Having said so, nothing stated in Rule 57C(2) can apply to fuels. In other words, whether credit reversal has to be on actual basis or 8% of the final goods price has to be paid, are not the issue, which are required to be examined. In plain and simple terms for want of satis....