TaxTMI 
TaxTMI 
2006 (7) TMI 7
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....d 1-3-2000 was issued whereby the product manufactured by the appellant was exempted from payment of duty during the month of March, 2000. Appellant availed credit as well as cleared goods under the said exemption notification. Thereafter, it suomotu reversed the credit of Rs. 1, 92,365/- to avail the exemption. It deposited the duty on 30-8-2000 for the month of March, 2000 and also applied for refund of the Modvat credit of Rs. 1, 92,365/- which was already reversed by it. The claim of refund was allowed by order dated 13-12-2001 passed by the Assistant Com missioner. Thereafter, the appellant again suomotu reversed the Modvat credit and filed the refund claim on 12-7-2001 in respect of the duty paid on 30-8-2000 for the month of March, 2....
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....the credit reversed by it and the refund was allowed. As the appellant availed the benefit of credit in respect of the inputs for the month of March 2000, therefore, it is not entitled for benefit of Notification. 6. The Tribunal held that the decision relied upon by the appellant was not applicable and in any event it having claimed refund and credit which was allowed it cannot again ask for exemption from payment of duty and the claim for refund of duty was rightly rejected. 7. In support of the appeal, learned counsel for the appellant submitted that the Tribunal was not justified in holding that the entitlement to exemption I under the Notification in question was dependent upon whether the assessee had availed Modvat credit of input....
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.... vide Number G.S.R. 171(E), dated the 28th February, 1999, published in the Gazette vide 8/2000-Central Excise, dated the 1st March, 2000 and 9/2000-Central Excise, dated the 1st March, 2000". 8. It is again pointed out that in certain other cases, for example, condition No. 27 the entry reads as follows: "27. If no credit of duty paid, has been taken under Rule 57A or Rule 57B or Rule 57Q of the Central Excise Rules, 1944." 9. Therefore, even if no credit of duty paid had been taken under Rule 57A, 57B or 57Q of the Rules, the exemption was available. Reliance is placed on a decision of this Court in Orissa Extrusions's case (supra). It was held in the said case as follows: "Learned counsel for the Revenue drew our attention to Rule 5....
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....e by him in respect of the inputs used by him. It was introduced w.e.f. 1-3-1986. The said scheme was regulated under rules 57A to 571 of Central Excise Rules, 1944 Rule 57A entitled a manufacturer to take instant credit of the central excise duty paid on the inputs used by him in the manufacture of the finished product, provided that the input and the finished product were excisable commodities and fell under any of the specified chapters in the tariff schedule. Under rule 57G, every manufacturer was required to file a declaration before the jurisdictional Assistant Collector, declaring his intention to take Modvat credit after paying duty on the inputs. The object behind rule 57A read with rule 57G and rule 57-I was utilization of credit ....
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....al, Modvat credit was not availed/admissible In respect of cast iron and castings, Modvat credit was inadmissible as both these inputs were ex empted, whereas in case of steel bars, the manufacturer did not avail of Modvat credit Therefore, the appellants were not entitled to clear the final products at concessional rate of duty. Lastly, without reversing the credit, the appellants cleared the final products at the concessional rate of duty, in breach of the above notification, in favour of their sister concern and consequently, the said sister concern was not entitled to the benefit of higher credit which was admissible to manufacturers who bought goods as their inputs from small scale industrial units (appellants herein). 15. It was argu....
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.... - No credit of the specified duty paid on the inputs used in the manufacture of a final product (other than those cleared either to a unit in a Free Trade Zone or to a hundred percent Export-Oriented Unit) shall be allowed if the final product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty." 14. It provides in mandatory and categorical terms that no credit of the specified duty paid on the inputs used in the manufacture of a final product (of the enumerated categories) shall be allowed if' the final product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty. Moreover on the facts of the case it is found that the manufacturer had availe....