9911796707
TMI Blog1998 (3) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... scrap as final products along with cycle chains and moped chains and also to examine the admissibility of Modvat credit on inputs to the extent of duty leviable on scrap generated during the processing of inputs for the manufacture of cycle chains from 29-9-1994 onwards. 2. Briefly stated the facts of the case are that the assessees are engaged in the manufacture of moped chains and cycle chains both falling under Heading 7315 of the Schedule to the CETA, 1985. The assessee was taking credit of duty paid on the inputs used in the manufacture of moped chains exported under bond and the credit so taken got accumulated in the RG 23A Part II. Since cycle chains manufactured by the assessees are exempt, they were not availing credit of duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. The Revenue is aggrieved by the order of demand in respect of Order-in-Original No. 59 and 60/96. 3. I have heard Shri A.M. Tilak, learned DR and Shri Harbans Singh, learned Advocates. 4. It is brought to my notice by the learned Counsel for the respondents that the assessees had filed Appeal No. E/981/97-NB against the Commissioner (Appeals) Order-in-Appeal No. 1234/96 arising from Order-in-Original No. 58/96 and vide Final Order No. A/986/97-NB, dated 23-10-1997, the Tribunal has taken the view that duty could be paid from the accumulated Modvat credit. The reasoning of the Tribunal is contained in paragraph 10 of the order which is reproduced below : It is significant in this connection that in the case of Rule 57F(4), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel has stated and the Department has not contradicted the fact that in the present case, the inputs are the same for the purpose of manufacturing moped chains and cycle chains and Rule 57F(4)(ii) read with 57F(5)(a) allows the credit to be utilised for payment of duty on waste arising from the processing of inputs in respect of which credit has been taken, I consider that the appellants prayer is justified. In these circumstances, the duty could be paid from the accumulated Modvat credit in the absence of duty provision to the contrary. Learned Commissioner has rightly set aside the penalty in the circumstances of the case and sinces there is no dispute in this respect at this stage and the case is confined to the payment of duty from Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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