2002 (7) TMI 609

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..... ants manufacture steam turbine and parts thereof falling under Chapter sub-headings No. 8406.10 and No. 8406.90. The appellants availed Modvat credit of Rs. 2,01,500/- in respect of control panel for bus coupler-cum-adaptor, bus bar trunking and interconnecting cables and ACs panel. The appellants cleared these goods from the factory under Rule 57F(1)(ii) of Central Excise Rules, 1944 and exported .....

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..... ) of Central Excise Rules, 1944; that the party claimed that these items were inputs for the manufacture of their final products viz., steam turbines. The Assistant Commissioner in his order has observed that Rule 57A is enabling provision for availing the Modvat credit in respect of the inputs used in or in relation to the manufacture of final products; that the Modvat credit is available on th .....

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..... (ii) The value of these accessories is included in the assessable value of the final product. In the present case, it is observed that these accessories did not satisfy the above two conditions. Consequently, the Assistant Commissioner in his order has confirmed a demand of Rs. 2,01,500/- on the appellants apart from imposing a penalty of Rs. 50,000/- on them under Rule 173Q of Central Exci .....

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..... es and the value of these accessories should have been included in the assessable value of the final product as provided under Explanation (e) to Rule 57A(1) of Central Excise Rules, 1944. The appellants on the contrary are claiming that the exported goods are components of the steam turbine manufactured by them and the same could be exported as such without reversing the Modvat credit in terms of .....

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..... the goods have actually been exported, there does not appear to be prima facie ground to recover from them the credit of duty availed on the exported goods. Consequently, the appellants are allowed the waiver from deposit of duty and penalty imposed on them and their recovery is stayed till the disposal of their appeal. The appeal is posted for final disposal on 19-8-2002. - - TaxTMI - TMITax .....

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