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Issues:
Validity of Modvat credit availed on inputs supplied under invoices issued under Rule 57GG of the Central Excise Rules, 1944. Detailed Analysis: 1. Background: The respondents were involved in manufacturing 'wet grinders' on a job work basis for a company. They availed Modvat credit on the duty paid for the inputs supplied by the company under Rule 57GG of the Central Excise Rules, 1944. The department issued a notice challenging this credit taken during a specific period. 2. Grounds of Appeal: The main contention raised in the appeals was the validity of the invoices issued by the company supplying the inputs. The Revenue argued that these invoices were not valid for availing Modvat credit due to the absence of a sale of goods under those documents. The respondents, however, relied on a previous case law to support their position. 3. Precedent and Decision: Reference was made to a previous case involving another job worker and the validity of Modvat credit availed on inputs supplied by the principal manufacturers. In that case, it was established that the transfer of inputs to the job worker constituted a sale, allowing for the valid availment of Modvat credit. The Tribunal upheld this view and allowed the Modvat credit in that case. Following this precedent and reasoning, the present Tribunal also upheld the impugned order and dismissed the appeals of the Revenue. 4. Conclusion: Based on the established case law and the interpretation of the relevant provisions, the Tribunal concluded that the respondents were justified in availing the Modvat credit on the inputs supplied under Rule 57GG of the Central Excise Rules, 1944. The decision was in favor of the respondents, in line with the previous ruling, and the appeals of the Revenue were consequently dismissed.
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