2003 (2) TMI 116

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....sue involved in this appeal filed by M/s. Rico Auto Industries Limited is whether the processes undertaken by them amount to manufacture and consequently whether they are eligible to take Modvat credit of the duty. 2. Shri B.L. Narasimhan, learned Advocate, submitted that the Appellants received Rotor Oil Filter (ROF) in semi-finished form from M/s. Rico Auto Industries Limited (sic); that they h....

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....g a penalty of equivalent amount on the ground that the processes undertaken by them do not amount to manufacture and as such the Appellants were not eligible to take Modvat credit of duty paid on the semi-finished ROF and GSD. The learned Advocate, further, submitted that the operations undertaken by them to make GSD and ROF complete and finished amount to manufacture; that in terms of Note 6 to ....

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....OF and GSD whereas they had taken Modvat credit amounting to Rs. 2,56,55,259/- only; that as such they have already reversed the credit more than the Modvat Credit taken by them and accordingly no further duty can be demanded from the Appellants; that in any event, the demand is time-barred as the show cause notice was issued on 1-2-2000 on the basis of invoices on the strength of which the Appell....

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....e inputs were not used in or in relation to the manufacture of any final products. We are of the view that without going  into the question as to whether  the processes undertaken by the Appellants on ROF and GSD amount to manufacture or not, the appeal can be decided on the basis of the provisions of Rules 57F(1)(ii) of Central Excise Rules, 1944 at the material time. The learned Advoca....