2007 (8) TMI 618 - AT - Central Excise

Summary

Issues involved: Interpretation of small scale exemption notification u/s Rule 57CC for goods manufactured under own brand name and availing modvat credit.

Summary:

Issue 1: Interpretation of small scale exemption notification for goods manufactured under own brand name.

The appellant, engaged in manufacturing inner tubes for tyres, cleared goods under their own brand name claiming small scale exemption notification. Revenue objected, alleging benefit not available if credit of duty paid on inputs is availed. Assistant Commissioner dropped the allegations, but the Commissioner (Appeals) allowed Revenue's appeal based on a Tribunal decision. The appellant relied on a Supreme Court decision. The Tribunal found the Tribunal's previous decision inapplicable and cited a different case where subsequent payment under Rule 57CC was deemed as no credit availed, thus extending the notification to the appellant. The impugned order was set aside, and the appeal was allowed with consequential relief.

End of Summary