9911796707
TMI Blog1996 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per : K.S. Venkataramani, Member (T)]. All these appeals filed by the Commissioner of Central Excise, Chandigarh against the Common Order of the Commissioner of Central Excise (Appeals), Chandigarh involve three issues relating to availment of Modvat credit. Firstly, the Assistant Commissioner has taken objection to the respondents herein availing of Modvat credit on the basis of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as non-duty paid. Thirdly, the Assistant Commissioner has denied Modvat on foundry fluxes chemicals used in the preparation of moulds on the ground that these are not used in or in relation to the manufacture of their final product which are valves and cocks. On the first issue the Commissioner (Appeals) directed the Asstt. Commissioner to compare the duplicate Gate passes with originals. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat of foundry fluxes is bad in law. The Respondents have rightly been held eligible for Modvat credit on these inputs. On the next issue relating to the deemed credit, again the matter is covered by a Larger Bench decision in the case of Machine Builders v. Collector of Central Excise, Bolpur, reported in 1996 (83) E.L.T. 576 (Tribunal) wherein the Larger Bench has held that the mere existence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r what notification the Department holds the inputs have been cleared duty free by the manufacturer-supplier of input from their factory. Therefore, we hold that the denial of the deemed credit can be lawful only on the Department establishing the clearance of the inputs in question from the factory of the manufacturer thereof under the notification concerned fulfilling the conditions thereof for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presumption that they must have been cleared by the manufacturer-supplier under exemption without any enquiry as to the factual position whether the condition for the exemption have been satisfied or not. It is further held that the direction given by the Commissioner (Appeals) to grant Modvat credit on the Assistant Commissioner, being satisfied that the particulars in the duplicate gate pass ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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