9911796707
TMI Blog1999 (8) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in smaller containers on payment of duty by utilising 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed modvat declaration and RT-12 returns and all other statutory 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of demand of duty against the appellants equivalent to the credit 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. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted the point that the final product in the form of repacking of pesticides was goods liable to duty. Therefore, the subsequent acceptance of Modvat declaration and grant of Modvat credit cannot be agitated in the form of taking a different stand that the payments made on final product was not proper and that appellant are required to expunge the modvat credit. This is precisely what the Tribunal has already expressed prima facie view and also has held in para-20 of the decision in the case of Bansal Auto Industries supra. We areinclined to confirm our prima facie view and accept the view expressed by the Tribunal in case of Bansal Auto Industries. Therefore, respectfully following the same ratio, we set aside the impugned order and allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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