9911796707
TMI Blog2002 (6) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... rther additional duty of Customs by virtue of Notification No. 356/76-Cus., dated 2-8-76 which is equal to the Excise duty leviable on the material viz. synthetic filament yarn used in the manufacture of webbings. They availed the Modvat credit of the additional duties of Customs (CVD) and also the additional duty paid in terms of Notification No. 356/76-Cus., dated 2-8-76 on the material used in the manufacture of the imported articles as inputs in terms of Rule 57A of the Central Excise Rules, 1944. However, they were issued a show cause notice dated 13-2-95 by the Assistant Collector of Central Excise, Bangalore-VIII Division alleging that they have contravened the provisions of Rule 57A of Central Excise Rules, 1944 inasmuch as they hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Excise specified under (ii) above It is contended that the additional duty imposed under Notification No. 356/76-Cus., dated 2-8-76 is also levied under sub-section (3) of Section 3 of Customs Tariff Act to counter balance the excise duty leviable on any raw materials/components and ingredients used in the production or manufacture of the imported articles and that the Modvat credit of the same would be admissible in terms of sub-clause (a) of Clause (iii) of the aforesaid Notification No. 5/94-C.E. (N.T.), dated 1-3-94. 5. Shri L. Narasimha Murthy, JDR has reiterated the findings as arrived at in the orders of both the lower authorities. 6. We have carefully considered the submissions made before us. In this regard we can do no b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restriction and limit imposed under Notification No. 5/94 that part of additional duty of Customs be allowed only equivalent to (i) and (ii) as discussed above and not beyond that. The additional duty imposed in addition is under sub-section (3) of Section 3 of Customs Tariff Act to counterbalance the excise duty leviable on any raw materials components and ingredients used in the production or manufacture of the imported article. There is no provision in Rule 57A and Notification No. 5/94 to allow such credit for such levy other than as specified in Rule 57A and Notification No. 5/94. What is relevant is the duty paid as inputs and the Modvat credit is clearly admissible in respect of 15% duty paid on webbings. The rest is not admissible a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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