1999 (9) TMI 621

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..... Respondent. [Order per : Gowri Shankar, Member (T)]. The question for consideration in this appeal is whether Modvat credit could be taken on inputs which were cleared by the appellant without payment of duty in terms of Notification 81/75 to another factory, where the goods were used in the manufacture of goods which were cleared on payment, of duty. 2. The Additional Collector had d .....

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..... mption. He relies upon the decision of the Tribunal in CCE v. Bajaj Tempo Ltd. - 1994 (69) E.L.T. 122 (T). 5. Identical issue was considered in Alkalyne v. CCE and the same arguments were advanced in that case. The Tribunal noted therein that the final goods were exempted from duty under a notification which has a condition with regard to procedures to be followed. It states that the larger benc .....

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..... given or that the exemption provided in notification is conditional upon a procedure being followed or for the goods to be used for a particular purpose does not render the exemption ineffective. An exemption under a conditional notification is no different from an unconditional exemption if the condition subject to which the exemption granted is fulfilled. If the condition is not fulfilled the e .....

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