2004 (12) TMI 517

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....al products NC Putty and Wood Filler and they had taken Modvat credit of the duty in respect of the said inputs on the basis of gate passes where the consignor have debited the duty from RG 23B Part II (Money Credit) which appear to be inadmissible as per Rule 57A of the Central Excise Rules, 1944. They were issued a Show Cause Notice dated 4-8-1993 calling upon to show cause as to why an amount of Rs. 60341/- should not be recovered from them. 2. The Assistant Commissioner, after hearing the appellant came to the conclusion that: (i)      the declaration filed under Rule 57G evidences that there has been declarations of the items N'Butyl Alcohol and Ethyl Acetate as inputs. (ii)    As o....

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....the manufacture for utilisation at the time of removal of final product. This money credit so obtained was therefore not duty of excise. Money credit with reference to the separate scheme contemplated under Rule 57K to Rule 57N would only be considered relevant for the limited purpose of setting the liability of duty on specified final product by utilising cash subsidy for setting higher quantum of duty. He thereafter concluded, this settlement as made under Modvat Credit Scheme should not be considered as payment of duty of Central Excise for the purpose of availability of Modvat credit of specified duties and subsequent utilisation under Modvat scheme for payment of duty on the final product. 4. This appeal is filed against the or....