2015 (4) TMI 697

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....dismissed. The facts leading to the present appeal, questioning the validity of the aforesaid order, read as under: The appellant herein is holding Central Excise Registration and is engaged in the manufacture of paints, varnish, primer, enamels and distempers falling under Chapter 32 and bituminous mixtures falling under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985. As per the appellant, it was availing MODVAT credit on all the movable inputs during the financial year 1999-2000. As on 31.03.2000, it had a closing stock of inputs and finished goods involving MODVAT credit of Rs. 86,222/- whereas the closing balance in RG-23A Part II was nil. With effect from 01.04.2000, it had started availing total exemptio....

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....ld show that he took into consideration para 2 of Notification 8/ 2000 which lays down the conditions subject to which exemptions contained in the Notification were to be granted. It was found that all the conditions mentioned in para 2 were fulfilled by the appellant herein which is clear from the following discussion contained in the order dated 08.04.2002 passed by the Additional Commissioner (Audit), Chandigarh:- "There is no condition precedent that exemption under Notificaton No.8 /2000 shall be available only if the credit of duty attributable to inputs in stock or inputs contained in the finished products in stock on day immediately preceding to the financial year shall have to be debited or reversed. It is no where laid down ....

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....ng the Rule, the same is interpreted by the Commissioner in the following manner:- "4.6 .... Sub Rule (2) of Rule 57 AG of the Rules inter alia further provide that a manufacture who opts for exemption from the whole of the duty of excise leviable on the goods manufactured by him under a notification bases on the value or quantity of clearances in financial year, and who has been availing of the credit of the duty paid on the inputs before such option is exercised, shall be required to pay an amount equivalent to the credit, if any, allowed to him in excisable goods lying in stock on the date when such option is exercised and after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still rema....