2018 (6) TMI 1343

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....als) for re-examination in the light of the relevant law and instructions on the subject. 2. The brief facts are that the M/s Swadeshi Polytex Ltd. (SPL) were engaged in the manufacture of Polyester Staple Fibre (PSF) classifiable under Sub-heading No.5501.20 of the Central Excise Tariff, and were bringing duty paid Mono Ethylene Glycol (MEG) classifiable under Sub-heading No.2905.90 of the Central Excise Tariff, for use in the manufacture of PSF (Polyester Staple Fibre). They were availing of the facility of set-off of the duty already paid on the MEG while discharging their duty liability on the PSF. This facility was available to them under Notification No.225/86-CE dated 03/04/1986 (as amended). Under Notification No.177/86-CE dated ....

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....hich was to be produced subsequently and on which appropriate CED was payable. Use of MEG in the manufacture of PSF was covered within the scheme of Modvat credit. 6. Under Rule 57H substituted by Notification No.28/91-CE(N.T.) dated 25/07/1991, certain "transitional provisions" were prescribed. Under Sub-rule (1) of Rule 57H, the Assistant Commissioner of Central Excise was authorized to allow credit of the duty paid on inputs which were lying in stock on 25/07/1991, if no credit had been taken by the manufacturer in respect of such inputs under any other Rule or Notification. Under Sub-rule 3 (b) of Rule 57H, transfer of the credit of duty paid on the inputs received by the manufacturer and lying unutilized immediately before obtaining....

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....from the factory on or after the 25th day of July, 1991, and that no credit has been taken by the manufacturer in respect of such inputs under any other rule or notification: Provided that no credit under this sub-rule shall be allowed in respect of inputs received, or declaration made under Rule 57G, on or after the 1^st day of September, 1991: Provided further that such inputs are not used in the manufacture of final product which is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty."; (b) after sub-rule (1), following sub-rule shall be inserted with effect from the 1st day of September, 1991, namely:- 7. From a plain reading of the amended Rule 57H(1), it is evident that the ....