9911796707
TMI Blog1998 (3) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... harat Petroleum Corporation Ltd., wherein the Modvat credit availed in respect of the inputs had not been included. Show Cause Notice was issued by the Assistant Collector VI Division, Bangalore asking the appellant to show cause why the amount of Modvat credit availed on inputs should not be added to the value claimed for approval and why the differential duty of Rs. 1,71,178.86 for the clearances effected in September and October 1993 should not be demanded under Section 11A of Central Excise Act and why penalty should not be imposed under Rule 173Q of Central Excise [Rules]. Appellant resisted the notice but the Asstt. Collector overruled the objections and passed his order-in-original dated 28-3-1994 holding that the Modvat credit taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision he submitted that the duty paid on the inputs cannot be excluded from the cost of the inputs for arriving at the assessable value of the final product. He pleaded for the dismissal of the appeal. 4. We have considered the submissions and perused the record. In view of the contention raised by the Departmental Representative that the Supreme Court decision cited by him would have the effect of overruling the Tribunal decision in the Dai-Ichi Karkaria case, we have gone through the Supreme Court judgment. We find that the plea of the assessee in that case for the exclusion of the duty paid on the wrapping paper used for wrapping other varieties of paper from the assessable value of the wrapped paper which was cleared on payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs. There was no claim in this case for exclusion of the amount of duty paid on the inputs from the assessable value of the final product, on the strength of Section 4(4)(d)(ii). This case is covered by the Tribunal decision in the Dai-Ichi Karkaria case as correctly pleaded by the learned Counsel for the appellant. In that case, for arriving at the finding that duty paid on inputs in regard to which Modvat credit is availed of by a manufacturer is not includible in the assessable value of the final product under Section 4(1)(b) of the Act and Rule 6(b)(ii) of the Valuation Rules, the Tribunal took note of the following : (i) The speech of the Finance Minister delivered on 28-2-1996 (sic) (1986 Budget speech) regarding the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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