9911796707
TMI Blog1991 (8) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturers of Aerated Waters were availing of Modvat provision was withdrawn for the appellants vide Notification No. 203/87 dated 9-9-1987 with effect from 1-10-1987. Appellants state that there are some inputs in stock for which they had taken credit of duty and utilised the same in payment of duty on final products. Similarly they have some inputs which had already been converted into final products but the said final products were not cleared within the factory, upon payment of duty. The Asst. Collector in the impugned order has held that since the parties are not eligible for the above credit, the same is disallowed". 2. The learned Collector (Appeals) has relied upon the judgment of the Tribunal while allowing this appeal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... water prior to 1-10-1987, without utilizing the said inputs duty will have to be collected on such inputs since the final products i.e. Aerated water" was no longer covered under MODVAT Scheme. It was also decided that the duty on unutilised inuts lying in stock as on 1-10-1987 should be recovered either through a debit to credit balance if any lying in RG 23A account or through a debit to PLA. As per the Board's letter action taken in disallowing Modvat Credit is in order". 4. The learned SDR reiterated the grounds of appeal. 5. The learned Consultant for the Respondents pleaded that in similar cases the Tribunal has upheld the order of the Collector (Appeals) where credit already taken either became exempted or came to be deleted from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Department that the manner of utilisation of the credit was otherwise than set out under Rule 57F. There is no specific provision under MODVAT Rules providing for recovery of MODVAT Credit whereby if in respect of any particular commodity credit allowed is utilised under Rule 57F and facility of MODVAT is withdrawn and the inputs received earlier to the date of withdrawal of the MODVAT facility are still lying unutilised. There is no one-to-one correlation also provided for in respect of the inputs used and the finished product manufactured out of the same for the purpose of utilisation of MODVAT Credit. It is not the case of the Revenue that input credit taken was not utilised for the specified finished product at the relevant tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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