2004 (3) TMI 149

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....ber (T)]. - The appellant uses the same modvated input in the manufacture of dutiable and exempted goods. They reversed the credit amount as attributable to the inputs used in the manufacture of exempted goods. All the same, jurisdictional Assistant Commissioner passed an order holding that they were liable to pay duty at the rate of 8% on the value of the exempted products manufactured and cleare....

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....upreme Court further held that on reversal of the Modvat credit, the assessee cannot be said to have taken credit of duty on the inputs utilised in the manufacture of final products. The Assistant Commissioner's observation that the decision of the Hon'ble Supreme Court in the case of M/s. Chandrapur Magnet Wires (P) Ltd. v. CCE, Nagpur is not acceptable because the ground of the case law refers t....

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....llants have reversed the entire Modvat credit taken on inputs received into the factory, irrespective of the fact whether they are used in dutiable or exempted final products, the appellants cannot be said to have taken credit of duty on the inputs utilised in the manufacture of the final products. Hence, the invocation of Rule 57CC and demand of the amount of Rs. 2,13,03,982/- equal to 8% of the ....

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....ds and have considered the submissions made by both sides. In addition to the legal position as noted by the Commissioner, the appellant has also submitted that duty demand in the present case is contrary to the Circular No. 591/28/2001-CX., dated 16-10-2001 of the Central Board of Excise and Customs wherein it has been clarified that in the cases like the appellant what is required is to recover ....