9911796707
TMI Blog1997 (10) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal is directed against the order of Collector (Appeals), New Delhi dated 20-7-1994 directing recovery of Rs. 1,76,375.70 availed of as Modvat credit by the appellants. 2. Appellants were engaged in the manufacture of Maaza , a fruit pulp based drink falling under Chapter sub-heading 2202.90 and aerated waters falling under Chapter sub-headings 2202.12, 2201.11 and 2201.12 respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice on 13-1-1992 to show cause why the said amount of Rs. 1,76,375.70 should not be recovered from them. 3. In reply appellants contended that there was no requirement under the Modvat scheme that before utilisation of the credit taken the inputs should have been used. Rule 57F(3) provides for instant credit and there was no bar for a manufacturer to utilise the entire amount of credit ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case law. 5. Collector (Appeals) confirmed the Order-in-Original passed by the Deputy Collector. 6. Arguing the case of the appellants before us Shri D.N. Mehta, learned Advocate submitted that the lower authorities had failed to consider the case law as well as Ministry s letter dated 20-8-1997 cited before them which fully supported the appellant s case. He submitted that it was the settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying in stock after the finished products became exempt was clearly recoverable from Rule 57-I. 8. We have given due consideration to the submissions of both sides. We find that the Tribunal has in very similar facts, viz. where Modvat credit was availed after the receipt of inputs in the factory and Modvat facility for final product (aerated waters) was withdrawn and where some inputs on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio of these judgments, we hold that in this case the appellants are entitled to the credit of Rs. 1,76,375.70 relating to stock of inputs even though the final product had ceased to be excisable with effect from 11-9-1991. 9. Accordingly, we set aside the impugned order and allow the appeal with consequential benefits to the appellants in accordance with law. - - TaxTMI - TMITax - Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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