2008 (9) TMI 57 - SCH - Central Excise

Whether the facilities in the factory of the assessee for carrying out bleaching, dying, printed and mercerising of textile fabrics would invite levy of excise duty at each stage of manufacture - held that the assessee would be entitled to Modvat credit if duty is paid at each stage of the manufacturing and, therefore, the entire exercise would be revenue neutral - Admittedly, assessee has paid duty at the final stage appeal of revenue is dismissed

Summary

The Supreme Court dismissed the appeal regarding the levy of excise duty at each stage of textile fabric manufacturing, citing the precedent set in the case of Indian Rayon and Industries Ltd. The Court upheld that paying duty at the final stage is sufficient, as the assessee would be entitled to Modvat credit if duty is paid at each stage, making the process revenue neutral.