TaxTMI 
TaxTMI 
2005 (10) TMI 471
X X X X Extracts X X X X
X X X X Extracts X X X X
....ri R.B. Pardeshi, JDR, for the Respondent. [Order per : Archana Wadhwa, Member (J)]. - The appellant is an independent processor of fabric for which purposes, they receive grey fabrics as also semi-processed fabrics from their customers. In respect of grey fabrics received from merchant-manufacturers, they use dyes, chemicals, consumables and packing materials procured by themselves in terms of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-processed fabrics on which duty is already paid by the first processor by taking the benefit of deemed credit scheme, as detailed above. The appellant has availed the credit of duty actually paid on the semi-processed fabrics. The dispute, in the present appeal, relates to availment of such credit by the appellant. It may be clarified here that the appellant is not seeking deemed credit in respec....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Pardeshi ld, JDR for the Revenue. It is seen that in terms of Rule 57A, manufacturer of final product is entitled to avail Modvat credit of duty paid on the inputs received by him. There is no restriction or bar in the said rule that duty on the inputs should have been paid only out of PLA so as to enable the input receiver to take credit of the same. Duty paid out of credit account is also avail....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l duty paid on such fabrics will be available. This has been interpreted by the lower authorities as actual duty paid refers to duty paid out of PLA. However, we find that there is no warrant or justification for the above narrow interpretation. Deemed credit is available to the input manufacturer for payment of duty on the said product as such, duty paid on the said product using such credit rend....