2005 (8) TMI 450

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g EOUs. At that time, the following goods were   lying in stock : Sl. No. Description of the finished goods. 1. 3, 4, DABP 2. P.M.P. 3. Mebendazole 4. Magnesium Analgin 5. Metformin HCL 6. Mebendazole (Stage I & II) M/s. PDCL took Modvat Credit of the CVD paid on the imported raw material content in the above goods amounting to Rs. 1,95,925/- and also credit of excise duty paid on the indigenous raw material content in the above goods amounting to Rs 2,39,927/-. Thus, on the date of de-bonding, they took total credit of Rs. 4,35,852/-. This credit was proposed to be disallowed to them on two grounds (i) that Modvat credit was not admissible in respect of inputs contained in the finished....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pellate order was challenged before this Tribunal in Appeal No. E/1115/98. During the pendency of this appeal, the dispute between M/s. PDCL and the Department was settled under the Kar Vivad Samadhan Scheme, (KVSS). Accordingly, Tribunal by final order No. 909/99, dated 24-9-1999 dismissed the appeal as settled under the KVSS. In the present appeal, it is contended that the goods found in stock on the date of debonding were not finished goods, but raw materials, intermediates and semi-finished goods and, therefore, Modvat credit of the duty paid on the goods was to be allowed to the de-bonded unit. This case of the appellants which has been forcefully put forth by the learned Counsel today is being contested with equal force by the learned....