2023 (6) TMI 295

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....or the Appellant Mr. S. Mukhopadhyay , Authorized Representative for the Respondent ORDER PER ASHOK JINDAL : The facts of the case are that the appellant was engaged in manufacturing and clearing of rubber/footwear inter alia manufacturing of rubberized textile fabric falling under TSH No. 5906.99 of Central Excise Tariff Act, 1985 and utilized the same for manufacturing of pressure so....

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....berised textile fabric. The benefit of exemption was not admissible as the goods were liable to be charged at nil rate of duty. If no credit was taken moreover the said rubberised textile fabric being input used for manufacture of PSP which were cleared at nil rate of duty and consume for same purpose was not eligible for the benefit of exemption Notification No. 67/95-CE dated 16/03/1995. Therefo....

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....her. The exemption which they claimed was also subject to the same condition that Modvat Credit should not have been taken on the inputs used in the manufacture of the exempted goods. In order to satisfy these requirements they paid Central Excise Duty of 8% as fixed for such cases under Rule 57CC. Rule 57CC relates to "adjustment of credit on inputs used in exempted final products or maintenance ....

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....pted goods. Their case is specifically covered by Rule 57CC as well as the decision of Supreme Court with regard to not availing of Modvat Credit on inputs in the Chandrapur Magnet Wires (P) Ltd. case. The impugned order is, therefore, clearly erroneous. The same is accordingly, set aside and the appeal is allowed. 7. The above view was affirmed by the Hon'ble Supreme Court in the case as repor....