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TMI Blog1997 (10) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondent. [Order per : A.C.C. Unni, Member (J)]. - 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 1,76,375.70. 2. They were issued a show cause 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deputy Collector also rejected the appellants' contentions based on 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 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that availing of credit taken on inputs for manufacture of finished products lying 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 faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, if such inputs are not so utilised, credit cannot be taken away. Following the 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 conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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