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TMI Blog1990 (3) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... r goods being exempted from payment of duty. The appellants had opted to avail of the MODVAT credit in respect of inputs received for the manufacture of paints. The said inputs were utilised first for the manufacture of Alkyd Resins, which were to be used for the manufacture of paints. A certain quantity of Alkyd Resin which were exempted from payment of duty were not utilised in the appellants factory where the same had emerged out of the inputs brought in and in respect of which MODVAT credit was taken for manufacture of paints but were cleared outside the factory and were stated to have been utilised in the appellants other factories. Inasmuch as Alkyd Resins which were exempted had been cleared out of the factory without payment of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of finished product such a benefit was permitted and cited the case reported in 1987 (32) E.L.T. 579. He, however, could not say whether the facts in that case and the present case were identical and whether the Notification 201/79 was pari materia so far as the availment of the set-off of duty was concerned in relation to the finished product manufactured by a manufacturer. He was asked to show whether there was any provision in the Rules for availing of the MODVAT credit in respect of any goods manufactured out of the same as intermediate products which were exempted when cleared out of the factory and used in another unit of the appellants factory. He stated that no doubt there is no specific provision in this regard but by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not utilise the inputs for the purpose of manufacturing specified finished product and wants to clear the same out of the unit, in that case the manufacturer is required to pay the duty in respect of the inputs for which credit has been taken by him. There is no provision for clearing of the inputs without payment of duty in case they are cleared out of the particular unit where the MODVAT credit has been taken in respect of the said inputs under Rule 57A even if the same were transferred to another unit of the appellants. The Scheme provides for the taking of credit in a particular unit and availing of the same in the same unit and there is no provision in law for transfer of the credit from one unit of the manufacturer to another uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed after the pre-treatment of the rice bran oil from one unit of the appellants and utilised in another unit would entitle the appellant to the benefit of the said exemption notification available to the oil manufacturers. But the notification in that case provides for the exemption in respect of utilisation of the rice bran oil for the manufacture of the other oil. The Scheme of the MODVAT, however, is differently worded and has to be given effect to in terms of the various rules as legislated and, as pointed out above, there is no provision in the Rules for either transfer of the MODVAT credit from one unit to the other and also for clearance of an intermediate product which may be exempt from payment of duty to another unit of the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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