2002 (12) TMI 170

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....glasses and avail of Modvat credit of the duty paid on inputs under Rule 57A, that Metallic frame up to 1-6-98 and powered sun-glasses were chargeable to nil rate of duty that the Dy. Commissioner under the Adjudication Order confirmed the demand in terms of Rule 57CC as the Respondents were manufacturing both the dutiable as well as products chargeable to nil rate of duty; that however, the Commissioner (Appeals), under the impugned Order, has allowed the appeals holding that once the Respondents have paid the duty on intermediate product namely, piece parts, the Modvat credit on inputs used in their making was definitely admissible irrespective of the fact that that the final finished goods were cleared without payment of duty. The learne....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... inputs they are liable to pay 8% of the price of the duty free goods. 3. On the other hand Shri A.R. Madhav Rao, learned Advocate, submitted that the Respondents manufacture sun-glasses which are dutiable metal frames which were exempted prior to 1-6-98 and powered sun-glasses which are charged to nil rate of duty; that for the manufacture of these products they produce various parts in their factories out of various duty paid items in respect of which they avail Modvat credit; that the parts which are used in the manufacture of sun-glasses are cleared without payment of duty availing the exemption under notification No. 67/95-CE; that the parts for manufacture of metallic frames and powered sun-glasses are captively removed on payment of....