TaxTMI 
TaxTMI 
2004 (2) TMI 592
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....xena, JDR, for the Respondent. [Order per : Moheb Ali M., Member (T)]. - The appellants are manufactures of metal containers falling under Chapter 72, 73 & 85 of Schedule to the Central Excise Tariff Act, 1985. The inputs for such manufacture are tinned M.S. Plates and Sheets. They procure these inputs either from the open market or from importers who import the material. The appellant....
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.... gate passes were never physically removed from their factory. 3. In regard to the first issue the Commissioner's contention is that credit can be taken on endorsed bills of entry only when the goods are imported by someone and sold to the user on a High Sea Sales Basis, in the present case the goods have been imported and warehoused. It is only the ex-bond bills of entry filed by the impo....
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....sses without physical clearance of goods is nothing but a new modus operandi. The goods shown to have been removed to M/s. TCIL were endorsed back to the appellant and on such endorsement Modvat credit has been taken. This according to him is not permissible under Rule 57G of Central Excise Rules, 1944. 4. The appellant's contend that the Commissioner has taken a super technical view of th....
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....n taken. Modvat credit taken on the duty paid goods is valid and cannot be denied on the mere ground that the goods have not been removed from the factory. 5. We have heard both sides. 6. On the issue whether the Modvat credit can be taken on the basis of endorsed bills of entry, we observe that so long as the duty paid nature of the inputs is not in doubt Modvat credit cannot be d....