9911796707
TMI Blog2001 (8) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... der, Advocate, for the Respondent. [Order]. - In the impugned order, the Commissioner (Appeals) held that, "The wool tops are intermediate products and not the final product. The final product being not exempt from payment of duty, credit on High Production Rectilinear worsted Comb PB-31 is admissible and is allowed. As regards the Modvat credit on (TFO) two for one twisting Machine, its functi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 57Q under the Modvat scheme. The Department alleged that the appellants had wrongly availed Modvat credit on capital goods, namely, TFO machine and high production rectilinear worsted Comb PB-31. The Assistant Commissioner disallowed Modvat credit and imposed a penalty. The appellant filed an appeal before the Commissioner (Appeals) who held as indicated above. 3. Arguing the case for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It was also submitted that the yarn is exempted from payment of duty under Notfn. No. 8/96, dt. 3-7-96, that Rule 57A/57Q provides that the credit of specified duty paid on the capital goods is not allowed if the capital goods are used for production of final product which is exempt from the whole of duty of excise. Ld. DR submits that the respondents herein did not file a declaration in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Order No. A/1140-41/99-NB, dt. 3-12-97, ld. Counsel submits that this decision squarely covers their case insofar as TFO is concerned. 5. On the question of wool top and yarn being exempted products, ld. Counsel submits that the applicants have a composite unit and wool top and yarn are intermediate products. He submits that under Rule 57D it has been specifically provided that the credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be admissible on TFO machine. I have also perused the relevant rules and the requirements of the rules. I find that wool top and yarn are intermediate products simply because they happen to carry a nil rate of duty. Modvat credit cannot be denied as both wool top and yarn are intermediate products and the final product is the fabric which is dutiable. In this view of the matter, I do not see a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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