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1996 (1) TMI 239 - AT - Central Excise
Issues: Modvat Credit eligibility, Description of items for Modvat Credit, Tariff classification discrepancy
Modvat Credit eligibility: The judgment revolves around the eligibility of the appellants for Modvat Credit amounting to Rs. 11,698.33, as decided in the Order-in-Appeal by the Collector of Central Excise. The objection raised was that the description of some items was too general and not specific enough to cover the inputs, leading to the denial of the Modvat Credit. Description of items for Modvat Credit: The appellants, engaged in the manufacture of bathroom and sanitary fittings made mainly of brass, faced challenges in providing specific descriptions of each input received for their manufacturing process. The learned Advocate argued that the objections raised were not valid, citing Tribunal decisions where general descriptions like "rubber processing chemicals" were deemed sufficient to cover specific inputs like Pilflex-13 and Pilnex-TDQ. The Tribunal found the declarations furnished by the appellants to be sufficiently descriptive of the inputs, covering items falling under 84.81. Tariff classification discrepancy: Another issue highlighted was the discrepancy in Tariff classification for an item declared as plastic tubes (Tariff Heading 3917.00) but received as flexible tubes (Tariff Heading 8481.99). The appellants justified the classification based on their understanding, while the goods were actually cleared under a different classification. The Tribunal concluded that the discrepancy in Tariff classification did not invalidate the description of the goods declared, as they were identifiable as plastic articles used in the manufacture of bathroom fittings. The judgment ultimately favored the appellants, setting aside the impugned order and allowing the appeal based on the reasoning that the descriptions provided were sufficiently descriptive of the inputs and that the Tariff classification discrepancy did not impact the eligibility for Modvat Credit.
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