9911796707
TMI Blog1997 (5) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... : G.R. Sharma, Member (T)]. The facts leading to the present appeal are that the appellants are engaged in the manufacturing of tyres and tubes used in the manufacture of Tractors. Under Notification No. 42/86 exemption to tyre and tubes of tractors is available after (1) An officer not below the rank of Asstt. Collector of Customs Excise is satisfied that such tyres tubes recommended to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y amounting to Rs. 10,03,135.35. After considering submissions made the lower authorities ordered reversal of Modvat Credit as stated above and also confirmed the demand of Rs. 10,03,135.35 and hence the appeal filed before us. 2. Shri L.P. Asthana, ld. Advocate appearing for the appellants submits that the Department cannot demand duty amounting to Rs. 10,03,135.35 as also order reversal of Mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 4. Heard the submission of both sides. We find that a very short issue is involved for determination in this appeal. We note that there is exemption Notification No. 42/86 which exempts tyres and tubes used as original equipment in tractors of which the engine capacity does not exceed 1800 cc. In the instant case we find that the appellants were maintaining two sets of accounts one for the tyr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to Modvat credit of duty paid on inputs in terms of Rule 57C of the Central Excise Rules, 1944. Thus the appellants had wrongly availed the benefit of Modvat credit and the lower authority has rightly ordered that this amount of Rs. 34,26,735.88 should be reversed. We hold accordingly. In so far as the demand of Rs. 10,03,135.35 is concerned we find that the tyres and tubes cleared by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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