2005 (1) TMI 125

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....cise Act, 1944, the applicant, viz. Commissioner of Central Excise, Chennai-I Commissionerate, Chennai has framed the following question to be referred to us for our opinion : "1. Is the Hon'ble Tribunal right in ruling that the assessee can avail the exemption available in Notification or pay duty, when the input in question in wholly exempt from duty vide Notification No. 5/99, dated 28-2-1999 ....

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.... is not disputed. 3. Rule 57A(1) of the Central Excise Rules reads as follows : "Rule 57A. Applicability. - (1) The provisions of this section shall apply to such finished excisable goods (hereafter, in this section, referred to as the final products) as the Central Government may, by notification in the Official Gazette, specify in this behalf for the purpose of allowing credit of any duty of e....

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.... the raw materials supplied to the assessee and the department accepted this excise duty. The concept of Modvat is that if the raw material suffered duty then relief should be given so far as the excise duty on the final product is concerned. For instance, if a manufacturer of coat purchases cloth on which the manufacturer of cloth has paid excise duty say Rs. 20/-, then if the excise duty on the ....