9911796707
TMI Blog1989 (1) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 5-3-1987 relating to availment of MODVAT credit by the appellants on their inputs. 2. The brief facts are that the appellants are manufacturers of multi layer plastic films for which the raw materials are polymers of ethylene in primary form. The appellants filed declaration on 29-3-1986 under Rule 57G of the Central Excise Rules for availing of the MODVAT Credit Scheme and requested for permission to avail of the MODVAT credit on inputs received by them during 1-2-1986 to 31-3-1986. The Assistant Collector in his order held that the finished product manufactured by the appellants namely multi layer plastic films were fully exempted upto 3-3-1986 under Notification No. 149/82 and became dutiable only from 4-3-1986 when the Exemption N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be used in the manufacture of finished product on which the appellants paid duty from 1-4-1986 onwards having opted for MODVAT. It was argued that so long as it was shown that the inputs were lying in stock on 1-3-1986 and were utilized in the manufacture of final product on which duty has been paid by the appellants, the provisions of Rule 57H would be applicable to such inputs and MODVAT credit should be allowed. The learned Consultant urged that Rule 57G relating to declaration is not applicable in such cases. 4. Shri K.K. Bhatia, the learned S.D.R. appearing for the Department contended that the fundamental requirement for availing of MODVAT credit is that the finished product should not be exempt from duty. This position is in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry on or after the 1st day of March 1986; (c) Duty on such inputs must not have been paid on or before 31-1-1986 or must have been paid after 1-2-1986; (d) Such inputs must not have been received on or after 1-4-1986 or must have been received before 31-3-1986. In the present case, it is not in dispute that the inputs in question were lying in stock on 1-3-1986 when the appellants filed their declaration for availing of MODVAT on 29-3-1986. The appellants began paying duty from 1-4-1986 and the goods became dutiable from 4-3-1986. The appellants' claim is that these inputs had been received into the factory before 1-4-1986 which is also verifiable from the records and that these were used in the manufacture of final product which were no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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