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2001 (2) TMI 633

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..... the issue is common in these four appeals, the same are taken up together for disposal. 2. The issue for consideration is whether proportionate amount of Modvat credit is reversible or demandable in view of the provisions of Rule 57C of the Central Excise Rules, 1944 in respect of the inputs used in the manufacture of the finished dutiable jute products when cleared under Chapter X procedure to an assessee who in turn used the same for manufacture of final goods which were cleared for export in bond without payment of duty under Rule 13 ibid. 3. The facts in brief are that the respondent company, which is a unit of M/s. Muralidhar Ratanlal Exports Ltd., availed Modvat credit on the specified inputs used in the manufacture of jute manufa .....

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..... missioner of Central Excise (Appeals), Kolkata, vide impugned order he has set aside all the four Orders-in-Original of the Asstt. Commissioner. Being aggrieved with the said impugned order, the Revenue has filed these four appeals before the Tribunal. 4. Shri R.K. Roy, learned JDR appearing for the Revenue, submits that the scope and applicability of Rule 57C is clearly and specifically defined and demarcated by the wording of the rule itself specifying therein certain exceptions. He further submits that since the final products were cleared without payment of duty under Chapter X procedure, Modvat credit availed on the specified inputs has to be reversed inasmuch as the Chapter X clearances do not find place in the category of exception .....

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..... 1C). In CCE v. Gavs Laboratories Pvt. Ltd. reported in 1997 (92) E.L.T. 696, the Tribunal held that refund is permissible even when goods are exported through merchant exporter. They also contend that removal without payment of duty under a bond does not mean that the goods are wholly exempt from duty or chargeable to nil rate of duty and as such Modvat credit on inputs on such intermediate goods need not be reversed as held by the Tribunal in J.K. Synthetics Ltd. v. CCE, Jaipur reported in 1996 (87) E.L.T. 389 (T). 6. We have heard the arguments advanced by the learned JDR and perused the concerned documents on record including the Memorandum of Cross-Objection filed by the respondent. We have also carefully perused the order impugned. I .....

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