9911796707
TMI Blog1999 (8) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... lising the duty paid on the bulk Bovistin . Appellants had filed the classification list in respect of these repacking of pesticides supplied by BASF LTD. and the classification list was approved holding the product to be dutiable as pesticides under Chapter sub-heading 3808.10. Therefore the prayer for utilising the Modvat on the duty paid on the bulk pesticides purchased from BASF LTD. was also been allowed and the matter had been fully regularised. There is no dispute on this point. However, after some time, the department took a view that the repacking of pesticides at that time does not amount to process of manufacture and the product was not dutiable and hence there was no question of taking credit on Modvat and hence such credits ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry documents. If the department felt that the final product was not dutiable, then they should not have collected the duty and not asked them to follow the statutory procedures. Be that as it may, even in the present case, there is no Revenue implication as the appellants are not seeking refund of their amounts and it is only a book exercise. There is no duty liability to the department on the appellant s utilising the modvat credit or any amounts required to be refunded by them. We prima facie agree with the appellants, contention and grant waiver of pre deposit and stay its recovery during pendency of this appeal. 5. Ld. Advocate Shri Krishna Srinivasan submits that this view of the Tribunal expressed prima facie as above has since be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit utilised and retaining the duty paid on the final products. It may so happen that the final product has further gone into the manufacture of other item as an input and credit of duty paid on the same has been availed by the second manufacturer as Modvat credit. As such, reversal of debit entries made originally would lead to complications and need to be availed. I also note that the appellants had availed credit and utilized the same for payment of duty on their final product. If they would not have adopted this course of action, they would have cleared their final product without payment of duty. So where is the loss of revenue in this transaction. 7. Ld. DR. Shri S. Kannan counters the pleas of the ld. Counsel on the ground that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
