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TMI Blog1994 (9) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal may be treated as not pressed. 2. For hearing the appellants appeal on merits they are required to deposit Rs. 3,87,54,480.27 towards duty vide order in appeal No. PCJ-370-371/B. III/94, dt. 20-6-1994. Shri Gupta, the Legal Manager submits that the entire issue hinges upon a small point as to whether, in computing the assessable cost of the goods, pursuant to the provisions of Rule 6(b)(ii) the duty paid on the inputs and taken as credit in pursuance to the Modvat scheme, should also be included for the purpose of arriving at the cost of manufacture. He submits that the very concept of the Modvat scheme is to provide the ultimate benefit to the consumer. He submits that the word Cost of production and manufacture used in Rule 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the inputs, has to be excluded, while working out the cost under Rule 6(b)(ii). In his submission therefore it is clearly a case where unconditional stay and waiver should be granted. 3. Shri Misra, the ld. SDR for the respondents has referred to the provisions of Rule 6(b)(ii) and also of Section 4 of the C.E. Act and has submitted that for purpose of arriving at the assessable value, the amount that the person has paid for the inputs has to be included. In his submission the credit that is being made available under the Modvat scheme, only means that the manufacturer can utilise the credit availed of for the purpose of duty on the final products but so far as working out of the cost of manufacture or for any other purpose, the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e body competent to determine the nature of costing, provide that the Modvat duty credit available, need not form part of the assessable value. Prima facie therefore there appears to be a strong case in favour of the appellants and in that case it is not necessary to direct them to make any deposit. There is no dispute on the issue that the compounds which are manufactured out of the inputs, are being used for manufacture of detergent powders by the appellants themselves in their own factories and those detergent powders are cleared on payment of appropriate duty and that they have been utilising the Modvat credit on these inputs for the purpose of paying the duty. One cannot ignore the aspects that the cost of production would also get red ..... X X X X Extracts X X X X X X X X Extracts X X X X
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