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TMI Blog1988 (8) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... products manufactured by them. Since the issue involved in the appeal itself lies in a short compass and is to be taken up for disposal to-day, the Stay Application is dismissed. 2. Appeal No. E/318/88/MAS. - This appeal has been preferred by the Collector of Central Excise, Belgaum against the impugned order of the Collector of Appeals referred to above. The respondents manufacture Aluminium. They filed declaration under Rule 57G of the Central Excise Rules opting to work under the MODVAT Scheme. They declared recovered Cryolite and Soderburg paste as inputs for the final product, namely, Calcined Alumina. The inputs namely, Cryolite and Sunderburg pasts, are manufactured by them and captively used in producing the final product. They a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the Assistant Collector s order should be restored. 4. Shri N. Mukherjee, the learned Counsel appearing for the respondents contended that the material had been duly declared as inputs under Rule 57-G and had been so accepted by the Department. The respondents had paid duty on them and thereafter they had availed of MODVAT credit. The materials were also covered by Notification specifying them as inputs eligible for MODVAT credit. In such circumstances, the reasoning of the Collector (Appeals) is well-founded and needs no modifications. 5. The submissions made by the learned S.D.R. and the learned Counsel have been carefully considered. Rule 57-A relates to applicability of MODVAT credit. It refers to facility of MODVAT credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of the term input used in Rule 57A. So long as the material is admittedly used in or in relation to the manufacture of the final product and declared as such, and duty had been paid on it, about which also there are no two opinions, the fact that such inputs are captively manufactured and consumed would not, in our view, make any difference to the framework of Rule 57A relating to credit of duty paid on excisable goods used as inputs. In fact, it would be incongruous if duty-paid inputs obtained from outside is considered eligible for MODVAT credit, while at the same time if the input is manufactured captively and duty paid thereon, the same MODVAT credit facility is denied to it. In this connection it is also significant that with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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