2009 (8) TMI 1214

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....arances under Rule 191B/191BB of the Central Excise Rules, 1944, when Rule 57C ibid is categorical in placing an embargo on the taking of credit on inputs if the final product is wholly exempt from payment of duty? 2. Is the Tribunal right in differentiating between exemption under Rule 191B/191BB of Central Excise Rules, 1944, and other exemptions granted by the Government of India, when ruling on the applicability of Rule 57C, when there is no valid ground for such differentiation? 3. Is the Tribunal right in relying on the earlier decision of CEGAT, Eastern Regional Bench, in the case of M/s. Orissa Synthetics Ltd., when the said decision is being agitated against in the Orissa High Court and the matter is sub judice? 2. The stat....

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....he credit of duty taken on the inputs used in the manufacture of such polyester staple fibre, should be expunged in view of the bar in Rule 57C ibid. For that purpose, two show cause notices were issued to the respondent, demanding the expungement of modvat credit to the tune of ₹ 1,30,618/- and ₹ 84,486.78 covering the above mentioned period. 5. The Assistant Commissioner of Central Excise, vide his Order-in-Original dated 30-6-1995 decided the issue in favour of the respondent following the ratio of the judgment of CEGAT in M/s. Orissa Synthetics Ltd. v. CCE, Bhubaneshwar, 1994 (69) E.L.T. 585 (Tribunal) in which the Eastern Regional Bench of the Tribunal had held that Rule 57C was not applicable for removals made under ....

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.... in Orissa Synthetics Ltd., 1994 (69) E.L.T. 585 (Tri.), held against the department. The relevant portion of the order reads as under : "5. ……. We find that Notification No. 49/1994 was issued under Rule 13 of the Central Excise Rules, 1944 which permitted export of goods under Bond without payment of duty. Without payment of duty is not the same thing as goods wholly exempt or goods chargeable at nil rate of duty, and therefore the provisions of Rule 57C are not attracted. We find that the learned commissioner (Appeals) erred in holding that the ratio of the decision of this Tribunal in the case of Dujodwala Resin was applicable. Following the ratio of the decision of this Tribunal cited by the appellant, we hold that ....