9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1998 (7) TMI 228 - Commissioner - Central Excise
Issues:
Appeal against Order-in-Original denying Modvat credit under Rule 57Q for the manufacture of final product; Admissibility of credit under Rule 57R for machines used exclusively for manufacturing exempted goods under Notification No. 214/86. Analysis: The appeal was filed against the Order-in-Original denying Modvat credit under Rule 57Q for the manufacture of the final product. The appellant, a manufacturer of motor vehicle parts, was also engaged in job work for another company. The dispute arose when the department alleged that machines purchased by the appellant were used for manufacturing exempted goods under Notification No. 214/86, contrary to the provisions of Rule 57Q of the Central Excise Rules. During the personal hearing, the appellant contended that the machines were used for both dutiable and exempted goods. They provided explanations and submitted relevant documents to support their claim. The department's investigation revealed discrepancies in the utilization of the machines for manufacturing specific products, leading to the issuance of a show-cause notice. The adjudicating authority, in the impugned order, denied the Modvat credit, stating that the machines were exclusively used for manufacturing exempted goods, making the credit inadmissible under Rule 57R. However, upon review, it was observed that the evidence did not conclusively prove exclusive use for exempted goods, especially considering the entries in the RG 1 register for the final product cleared on payment of duty. The Commissioner noted that the limited period considered by the adjudicating authority was insufficient to draw definitive conclusions for the entire period. The appellant was directed to provide concrete evidence to establish that the machines were not exclusively used for manufacturing exempted goods. As the appellant's position was not conclusively proven, the case was remanded for fresh adjudication by the original authority to address the issues raised during the appeal process.
|
