1991 (4) TMI 238 - AT - Central Excise

Summary

Issues involved: Interpretation of Notification No. 175/86 and eligibility for Modvat credit.

In the judgment by the Appellate Tribunal CEGAT, MADRAS, the issue at hand was whether the appellants, benefiting from Notification No. 175/86 for certain commodities, could also claim Modvat credit for a different commodity. The Tribunal considered the instructions from the Ministry and a previous decision, emphasizing the need to verify if the inputs for which Modvat credit is claimed differ from those used in commodities under Notification 175/86. The Tribunal highlighted that the benefit of Modvat credit can be availed as long as the inputs and finished products for which the credit is claimed are distinct from those under the notification. Due to lack of verification by lower authorities, the matter was remanded for proper assessment, affirming that there is no impediment to claiming Modvat credit alongside benefits under Notification 175/86 once specific conditions are met.