9911796707
TMI Blog2000 (2) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the above application under Section 35G(1) of the Central Excise Act, 1944 for reference of the following question of law stated to have arisen out of Tribunal s Final Order No. A-986/97-NB, dated 26-10-1997 [1998 (100) E.L.T. 362 (T)] : Whether the Modvat credit accumulated in respect of inputs used in the manufacture of dutiable goods exported under bond without payment of duty can be util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Rules. Scrap generated during the manufacture of cycle chains became dutiable w.e.f. 1-3-1994 with the rescinding of Notification 171/88, dated 13-5-1988 Since Moped chains were being exported without payment of duty, Modvat credit availed in respect of inputs got accumulated in the RG 23A Part II. While effecting clearances of scrap generated during the manufacture of moped c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed to be used towards payment of duty on scrap generated during the manufacture of chains which are exempted from duty because cycle chains and scrap arising therefrom were not generated from processing of inputs separately accounted for, and on which no Modvat credit was allowed. The lower Appellate authority rejected the appeal of the assessee but dropped the penalty on the ground of absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared final products cleared on payment of duty but also to any input which may be used for the manufacture of final product and to waste arising from processing of inputs. The learned DR highlights the aspect that cycle chains are exempt from payment of duty and no credit is admissible on inputs used for the manufacture of the same and that Rule 57F(4)(1)(ii) relates to waste and final products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reference application. I have considered the rival submissions. There is no doubt that the question as framed by the Revenue is a question of law and it has not been the subject matter of any authoritative pronouncement by a High Court. It is a question which requires a decision by a jurisdictional High Court and I, therefore, allow the application for reference and forward the question as fram ..... X X X X Extracts X X X X X X X X Extracts X X X X
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