1991 (3) TMI 256 - AT - Central Excise

Summary

Issues:
Departmental appeals against orders of Collector of Central Excise (Appeals) regarding modvat matters on inputs wholly exempted from duty under conditional notification.

Analysis:
1. The learned Counsel argued that the issue of modvat matters on exempted inputs was settled by previous Tribunal orders, including one dated 20-12-1990. The JDR for the Department agreed that the matters were covered but referred to a judgment of Punjab & Haryana High Court stating the burden of proof on the department. The Counsel highlighted that the High Court judgment was inconclusive and requested the Tribunal to follow established precedent. The Tribunal considered these submissions.

2. The Tribunal noted that the case was in line with previous Tribunal orders, including one from 20-12-1990. The Department's grounds of appeal and the High Court judgment did not conflict with the Tribunal's orders. The High Court emphasized the manufacturer's initial burden to claim deemed credit on inputs, with the department having the right to contest. The Tribunal agreed with these observations.

3. The Tribunal concurred with the High Court's view that the burden is on the manufacturer to establish the status of inputs for deemed credit, with the department having the option to contest. There was no contradiction between the High Court's stance and the Tribunal's orders, emphasizing the manufacturer's responsibility to define input status.

4. The Tribunal reiterated the manufacturer's duty to take a clear stance on inputs for deemed credit, with the department's right to challenge. Each case must be assessed based on facts and circumstances to determine if the input falls under exceptions. In the present cases, manufacturers defined inputs, and the department contested, leading the Tribunal to interpret notifications and issue orders.

5. The Tribunal found no support from the Punjab and Haryana High Court judgments for the Department's position. Upholding the previous orders applicable to the current cases, the Tribunal rejected the appeals, as the department failed to demonstrate how the High Court judgments could alter the outcome.