2000 (9) TMI 1055 - AT - Central Excise

Summary

Issues involved: Interpretation of Notifications 175/86 and 1/93, eligibility for rule 57A benefit, availing small scale exemption and modvat credit for same specified goods.

Interpretation of Notifications 175/86 and 1/93: The matter was referred to the Tribunal to determine if the assessee could benefit from Notifications 175/86 and 1/93 simultaneously for the same specified goods. The Tribunal, based on a previous decision, ruled that a manufacturer could avail of modvat credit and full duty exemption under small scale exemption Notification for the same specified goods, subject to certain conditions.

Eligibility for rule 57A benefit: The Tribunal noted that an assessee could avail of small scale exemption and modvat credit facility for different goods, as confirmed by a Supreme Court decision rejecting Revenue's appeal against a previous Tribunal decision.

Availing small scale exemption and modvat credit: Following the decision of the Larger Bench in Franco Italian Co. Pvt. Ltd., it was established that a manufacturer can avail of both SSI exemption under Notifications and modvat facility. The Tribunal ruled in favor of the assessee based on the precedent set by the earlier decision, allowing the appeals and setting aside the impugned orders.