1996 (12) TMI 247

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..... proceedings on the ground that the appellants have availed Modvat credit on inputs which have been used in the manufacture of their final product namely stearing gear assembly. In the process of manufacture, sub-assemblies are made. The department held that these sub-assemblies themselves are finished products and therefore the appellants having not declared it as such could not have taken Modvat .....

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..... h have been cleared subsequently on payment of duty which would show that they are taking credit on a final product not included in the declaration and it was irregular. It is this quantum of credit the department wants to reduce and recover. 4. Submissions have been carefully considered. The issue is whether the credit of input duty taken on the inputs going into the sub-assembly which have bee .....

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..... mposed by the Additional Collector would be sufficient. In this context, it is also noted that for a subsequent period, the Commissioner (Appeals) has held in their favour by an Order No. A-162/91, dated 23-10-1991. There is no information as to whether that order has been challenged by the Department. Therefore it is held that there is no irregularity in their availment of Modvat credit in this c .....

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