2000 (12) TMI 727 - AT - Central Excise

Summary

Issues involved: Revenue appeals challenging Order-in-Appeal Nos. 200 to 206, dated 26-8-1994 regarding Modvat credit eligibility for goods used in manufacturing final products claimed under bond for export purposes.

Summary:
The Revenue appeals were consolidated as the issues were common and well covered by previous Tribunal decisions and the Supreme Court. The Revenue argued that no Larger Bench decision existed on the issue, while the Respondent cited Tribunal decisions to support Modvat credit eligibility for goods used in manufacturing final products for export under Rule 191B/191BB.

The Revenue contended that Modvat credit should not be available based on a different interpretation of the rules. However, the Tribunal found that Modvat input credit was eligible for goods removed under Rule 191B/191BB for eventual export, citing relevant case law and Supreme Court decisions.

The Tribunal emphasized that goods eventually exported are not considered exempt goods, supporting the eligibility of Modvat credit. It was also noted that denial of input credit would not be justified solely based on obtaining advance licenses under a different scheme.

Ultimately, the Tribunal rejected the Revenue appeals and confirmed the lower authority's order, upholding the eligibility of Modvat credit for goods used in manufacturing final products for export under Rule 191B/191BB.