1995 (8) TMI 127 - AT - Central Excise

Summary

Issues:
1. Eligibility of Modvat credit for exported medicines.
2. Interpretation of Notification No. 1/93.
3. Misconstrued factual position by the Collector of Central Excise.
4. Remand of the issue for reconsideration.

Analysis:

The appeal before the Appellate Tribunal CEGAT, Madras involved the eligibility of Modvat credit for medicines exported by the appellant. The appellant, a manufacturer of P and P medicines, challenged the denial of Modvat credit by the Collector of Central Excise (Appeals) on the basis of Notification No. 1/93. The appellant contended that the Collector's finding that only non-P and P medicines were exported was factually incorrect. The appellant supported their claim with statutory documents, GP2, evidencing the export of P and P medicines classified under Tariff Heading 3003.10. The Tribunal noted the discrepancy between the original authority's reasoning and the Collector's findings, emphasizing the need for a reconsideration of the issue based on factual evidence.

The Tribunal observed that the original authority's denial of Modvat credit based on the appellant's eligibility for exemption under Notification No. 1/93 was flawed. The Tribunal clarified that the notification applied to goods cleared for home consumption, not exports. Upon reviewing the GP2 documents provided by the appellant, which were accepted as genuine by the learned DR, the Tribunal concluded that a remand was necessary for the original authority to reassess the appellant's claim for Modvat credit regarding the exported P and P medicines. The Tribunal set aside the impugned order and directed the original authority to reexamine the issue after affording both parties due opportunity, emphasizing the specific focus on the appellant's entitlement to Modvat credit for the exported medicines classified under Tariff Heading 3003.10.

In conclusion, the Tribunal found merit in the appellant's challenge to the denial of Modvat credit and ordered a remand for a fresh consideration of the issue in light of the factual evidence presented. The decision highlighted the importance of accurate factual assessment and proper interpretation of legal provisions in determining the eligibility for Modvat credit in the context of exported medicines.