9911796707
TMI Blog1998 (8) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... number of products at various factories located all over the country. One such factory is situated at Haji Bunder, Sewri, Bombay-15. To manufacture soaps, polycoated stiffeners is one such input. It is a packing material used for packing the final product soap. It is received from the manufacturers of poly coated paper either in the form of jumbo roll or roll, which are slit to the required width. When jumbo rolls are received, they are required to be slit to the specified width in order that they can be mounted on packaging machines. The Appellant used to receive through job workers duly slit to the specified width under endorsed duty paying documents. Show cause notices dated 10-4-1991 for Rs. 8,520.03 and 6-6-1991 for Rs. 4,407.34 were i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Identity of goods is challenged in this case, whereas ruling cited, it was not so. Gate Pass 1 was in the name of party, whereas in this case it is in Job workers s name. In the course of reply, it is urg- ed by the Appellant that endorsement by job worker as Gate Pass 1 establish identity under Rule 57F(2). The goods were not directly received by the Appellant. So not followed 3. Point to be considered is whether Modvat credit is eligible to the Appellant in this case? My finding thereon is in the affirmative. 4. Perused the show cause notices, reply, documents produced order-in-original, order-in-appeal, appeal memorandum Trade Notice No. 47/92, dated 25-9-1992 of Madhura Collectorate, Para 1(c) Indore No. 42/92, dated 28-9-1992 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scheme of the Modvat credit the important aspect is that the Modvat credit is available only when the input received has suffered duty, which is supported by a duty paying documents, and the input is received and utilised in the manufacture of the final products. The source of receipt is not material. From the gate passes it is clear that the supplier has directly sent to the job worker, who after processing it has sent to the Appellant along with the gate pass with their endorsement. So from this it is clear the input has suffered duty and paid by the supplier. The identity of the goods is not lost as held by the lower authorities. Even accepting the case of the department, the input still remain as poly coated stiffeners. The descrip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that it is not in the job roll and the original weight. As already discussed above, the form in which the inputs are received through the job worker does not lose the identity of the nature of the input. The endorsements on the gate pass by the job worker has established the identity as contended by the Appellants. Nexus between the input good (sic) the gate pass and the processed input is forthcoming in this case. So the Modvat credit is admissible as contended by the Appellants. The point raised is answered in the affirmative and hence pass the following order. ORDER For the reasons discussed above the appeal is allowed with consequential relief according to law and the orders of the lower authorities are set aside. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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