2002 (8) TMI 863

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....ber) The short issue involved in the present appeal is as to whether the appellants are entitled to avail the modvat credit in respect of pig iron used in the manufacture of mould boxes which are further captively consumed by the appellants in the manufacture of C.I. Castings, removed without payment of duty under Rule 57F(3). 2. After hearing Shri B.K. Munsi, Id. Consultant appearing for th....

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.... of C.I. Articles, which are being removed by them without payment of duty. As such, the provisions of Rule 57C comes into play and the appellants cannot be allowed to avail the credit in respect of pig iron. On the other hand, it is the appellants' contention that they are working under job-work scheme as envisaged under Rule 57F(3) and are clearing the C.I. Articles without payment of duty t....

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....together so that the chain of rnodvat credit is not broken. The said decision was given by the Tribunal by referring to the earlier decision of the Tribunal in the case of Bajaj Tempo Ltd, reported in 1994 (69) ELT 122 = 1994 (50) ECR 549 (T). Para 5 of the said judgement reads as under:- "5. In both the Notification viz. 214/86 and 217/86, the requirement is that the final products shoul....

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....of the view that the principle laid down therein would be equally applicable to the facts of the present case. Hence, following the ratio of the above decision cited supra, we hold that the appellants are entitled to modvat credit of the amount disallowed by the adjudicating authority, set aside the denial of credit and the imposition of penalty. The impugned order is set aside and the appeal allo....