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TMI Blog1998 (8) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 8.00 lakh imposed upon them and staying the recovery thereof. 2. Arguing on the application, Shri S.K. Bagaria, learned Advocate submitted that the applicant firm is engaged in the manufacture of plastic blow moulded containers classifiable under Heading 3923.90, out of HDPE granules falling under Heading 39.01. He submitted that the said granules i.e. the raw-materials, are being procured by them from three different sources as follows : (i) From M/s. Indian Petro-Chemicals Ltd., on which appropriate duty was paid. No credit was availed by the applicants; (ii) The said granules were imported and/or purchased on high seas sales basis and cleared under open General Licence on payment of duty. But no Modvat credit was availed on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Elaborating on the arguments, he submitted that the `duty paid means appropriate duty payable on such goods. As the imported granules were leviable to `nil rate of duty in terms of Notification No. 203/92, the same is also duty paid on the raw materials and as such the conditions of the Notification stand duly satisfied. He submitted that the issue is no more res integra and has been set at rest by the Honourable Supreme Court in the case of Collector of Central Excise, Patna v. M/s. Usha Martin Industries reported in 1997 (94) E.L.T. 460 (Tribunal) = 1997 (22) RLT 221, wherein referring to a number of Board s Circulars, it has been held that the expression - on which the appropriate amount of duty of excise has already been paid - in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise leviable thereon under the Central Excises and Salt Act, 1944 (1 of 1944) or the additional duty of customs leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), as the case may be, has already been paid and no credit of such duty is availed of under Rule 37A of the said Rules; or (ii) such articles are produced out of scrap of plastics." 7. The dispute is as to what is the additional duty for Customs leviable on the inputs. If the duty leviable on the inputs imported is nil , can the applicants be said to have satisfied the condition? The issue before the Honourable Supreme Court in the case of Usha Martin was interpretation of the similarly worded notification, inasmuch as the exemption was available to the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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