1997 (2) TMI 331

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..... this appeal of the Revenue is whether the Modvat credit availed of by the respondent company on Oleum would be liable to be reversed to the extent of its content which has gone into manufacture of another commodity namely `Spent Acid . A show cause notice was issued. However, the Assistant Commissioner dropped the demand on the ground that Spent Acid was not a by product, a refuse or a waste and .....

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..... A is being cleared with payment of duty whereas Spent Acid is cleared without payment of duty by the said assessee. Hence the availment of Modvat credit of duty on that part of Oleum which gave birth to Spent Acid was not permissible as per the provisions of Rule 57C of the Central Excise Rules, 1944. Show cause notice was issued on the basis of Board s Instruction No. 267/56/88-CX-8 (Circular No. .....

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..... m the benefit of Modvat credit on Oleum used in the manufacture of the final product namely, Detergent or OSAA. He also points out that there is a direct decision of Honourable Allahabad High Court in the case of Varuna Salphonators (P) Ltd. v. Union of India reported in 1993 (68) E.L.T. 42 (All.), which fully justifies the stand taken by the lower authorities. He, therefore, submits that Revenue .....

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