9911796707
TMI Blog1998 (1) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... DR, for the Respondent. [Order per : K.S. Venkataramani, Member (T)]. - The appeal is directed against the order dated 12-10-1992 passed by the Collector of Customs and Central Excise (Appeals), Bombay. The Department had filed a review application before that authority seeking review of order passed by the Assistant Collector of Central Excise, Division I, Thane granting Modvat credit on certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assistant Collector accepted the appellants contention that the inputs in this case were actually used in the manufacture of the final product when the goods were destroyed at the semi-finished stage due to fire. He also noted that on the inputs which were destroyed by fire as such without being put to use, the appellant had paid back the credit of such inputs through TR-6 challan. In this v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .S. Kumar, the ld. JDR contended that the very scheme envisages the utilisation of credit in the manufacture of the final product. In this case, the destruction by fire has occurred even before the emergence of the final product. There is therefore no question of allowing duty credit for payment of duty on the final product which has not emerged at all. Reliance is also placed on the Tribunal deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the credit, it is to be utilised towards payment of duty on any of the final products in or in relation to the manufacture of such inputs "intended to be used" in accordance with the declaration filed under Rule 57G. Therefore, in the present case, the inputs BOPP films and prepared glue have admittedly been put to intended use, and have even passed one stage of mixture with the other chemic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being claimed on the quantity of the inputs which were destroyed as such. The Assistant Collector has observed that they have paid back the credit of duty involved on that quantity. In these circumstances, considering that the Modvat scheme itself is a beneficial provision for according input duty relief, we are of the view that the decision of the Assistant Collector is reasonable and in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X
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