1996 (6) TMI 131

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..... Member (J)]. The above appeal arises out of the order of the Collector of Central Excise, Indore, confirming a duty demand of Rs. 6,05,414.25 representing Modvat credit allegedly utilised wrongly by the appellants and imposing a penalty of Rs. 1 lakh upon them. 2. We have heard Shri A. Upadhayay, learned Counsel and Shri J. Singh, learned DR. 3. Briefly stated, the appellants manufactur .....

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..... nion of India reported in 1990 (50) E.L.T. 64 (P H) in which the Court held that Modvat credit lawfully earned on a commodity could be utilised even after withdrawal of Modvat for that particular commodity viz., non-conventional oils for manufacture of vanaspati. In the case of Dipak Vegetable Oil Industries and Another v. Union of India and Others reported in 1991 (52) E.L.T. 222 (Guj.) = 1991 .....

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..... manufacturer of his right to utilise the credit already earned. We also note that there is no provision in the Central Excise Rules for reversal of credit in such a situation. The ratio of the above cited judgments are applicable to the facts of this case and respectfully following the ratio thereof, we hold that the appellants are entitled to utilise the credit already earned, set aside the impu .....

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