1997 (12) TMI 401 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, Mumbai allowed the appeal against the denial of Modvat credit on ammonia used in the manufacture of Nitric Acid. The denial was based on a technical ground under Rule 57D, which was later amended to include goods chargeable to 'nil' rate of duty. The Tribunal set aside the denial of credit, citing a previous decision and holding that 'charged to nil rate of duty' means no duty is actually charged. The appeal was allowed.