2006 (1) TMI 324

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....ppellant. Ms. Ashima Bansal, JDR, for the Respondent. [Order]. - The relevant facts which arise for consideration in this appeal is that the appellants are manufacturer of transformer and repair old transformer sent to them by the Electricity Board. For the manufacturing transformer the appellants availed the Modvat credit on the DPC wires purchased by them on payment of duty. These wires....

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....curred with the views of the adjudicating authority. 2. Learned advocate appearing for the appellants subnets that the issue in this case is regarding denial of Modvat credit which could not be demanded from them as they have discharged the duty liability on the coils which were used in the repair of transformer. He submits that even if it is not considered as payment of duty it will amoun....

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.... find that it is not in dispute that the appellants have discharged the duty on coils which are used by them while repairing the old transformers sent by the State Electricity Board. The dispute is restricted to the Modvat credit on the DPC consumed for making such coils. I find that the appellant's case is covered by the Supreme Court's judgment in the case of CCE & C (Appeals), Ahmedabad v. Nara....

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....echnical and there is no revenue implication inasmuch as the payment of duty on otherwise exempted goods nullified the effect of credit taken. The ratio of the apex Court's decision in the case of Naryan Polyplast applies in favour of the assessee." I find that in this case the appellants have paid duty on the coils, assuming that even they are not required to do so it would amount to reversal ....