2003 (9) TMI 197

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.... (J)]. - The respondents had cleared high-tension steel wires against CT-2 certificates at nil rate of Central Excies duty to another factory for special industrial purpose for manufacturing the concrete railway sleepers. They were availing Modvat credit on the wire rods used in the manufacture of the said product. The wires cleared by the appellant were used by the recipient factory in the manufa....

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....at credit. The goods cleared under Chapter X Procedure cannot be equated with exempted goods or goods chargeable to 'NIL' rate of duty. And, hence the recipient of the goods under Chapter X Procedure should be deemed to be the extended unit of the appellant for the purpose availment of Modvat credit on wire rods. Therefore, impugned goods fall very much within the definition of 'input'. Further, T....

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....s. A 595 to 598/Cal/96, dated 2-9-96 in a case of similar merit has held that there is no stipulation in the statute that manufacturer should export. "The only condition is that final product has been exported. Therefore, balance of Modvat credit should be refundable to the manufacturer if it has not been possible to utilise the same in terms of the said proviso. This is the ratio of the Tribunal'....

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....s that their only objection is that the goods were not cleared for export purpose from the manufacturing premises directly. They have also contended that Rules 191B and 191BB of Central Excise Rules, 1944 were omitted w.e.f. 1-10-94. They have referred to Rule 5 of Cenvat Credit Rules, 2002 and sub-rule (7) of Rule 57AC of Central Excise Rules, 1944. 3. We have considered the submissions made b....