2004 (4) TMI 471

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.... Shri Bidhan Chandra, JDR, for the Respondent. [Order]. - The appellants are engaged in the manufacture of 3 wheelers prior to July 1999. They were manufacturing a particular model of 3 wheeler called "GARUDA". The said model, they stopped the manufacturing of the said model and switched over to the new Model "Piaggio. At that point of time, the appellants were having stock of inputs, whic....

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....product or when they cleared the inputs, as such.   It is their contention that the credit cannot be used for payment of duty on their final product "GARUDA" three-wheeler inasmuch as they have stopped the manufacture  of the same. The appellants claim is that they are also clearing the various inputs, 'as such' as a part of their commitment towards after sale service. As and when t....

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....Rule 57G of the Rules" 3. After hearing the learned J.D.R. appearing for the Revenue, I find force in the above contention of the learned Advocate appearing for the appellants. The inputs are still lying in their factory premises along with credit in their Modvat account. As per the provision of Modvat rules, input on which the appellant had taken credit can be cleared as such, by reversin....