2000 (8) TMI 109 - AT - Central Excise

Summary

Issues Involved:
The issue involves whether an assessee can simultaneously avail the benefit of Modvat credit and full exemption under a small scale exemption notification for the same specified goods.

Summary:
The appeal before the Appellate Tribunal CEGAT, Court No. III, New Delhi, was referred to a Larger Bench to determine if an assessee could avail the benefits of Modvat credit and full exemption under a small scale exemption notification for the same specified goods. The Tribunal had previously held that these benefits could be availed simultaneously for different specified goods. However, a conflicting decision by the Tribunal in another case raised questions. The Supreme Court had confirmed the earlier decision, emphasizing the doctrine of merger.

The appellants argued that their case was similar to a previous Tribunal decision, but the Revenue had filed an appeal against it. The issue was whether goods manufactured by the appellants could be considered different based on brand names. The Tribunal considered the matter in light of previous decisions and Supreme Court rulings.

The Tribunal referred to a Supreme Court case involving the reversal of Modvat credit for duty-free goods, allowing for the availment of both Modvat credit and full duty exemption for the same specified goods. Following this precedent, the Tribunal set aside the Commissioner of Central Excise's order and allowed the appeal, subject to the condition of reversing Modvat credit for duty-free goods.

Separate Judgment:
No separate judgment was delivered by the judges in this case.