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TMI Blog2002 (10) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... to a unit availing Notification No. 1/93-C.E., dated 28-2-1993 even in a case wherein after crossing the limit of Rs. 75 lakhs worth of clearances of their goods, they start to pay full rate of duty ? . STATEMENT OF FACTS 2. The facts of the case are that the Revenue filed an appeal against Order-in-Appeal No. 232/95(M), dated 17-11-95 dated 4-7-97 passed by the Commissioner of Central Excise (Appeals), Madras. The issue in appeal related to grant of deemed Modvat credit after the assessee exceeded the exemption limit for clearances i.e. clearances exceeding Rs. 75 lakhs. The Commissioner (Appeals) in his order had taken a view as held in Para 3.1 which is as follows :- 3.1 I have considered the issues in the appeal. The issue raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the consultant, if the interpretation given by the Assistant Commissioner is accepted it would result in discrimination and invidious distinction in a case where a manufacturer similarly placed plans to procure the inputs as much as possible before crossing Rs. 75 lakhs and avail the deemed credit, to utilize such credit for payment of duty after crossing 75 lakhs and a manufacturer who does not plan so. In this view of the matter, I hold that the order of the Assistant Commissioner is not sustainable in law. Accordingly, I set aside the same allowing the appeal with consequential relief. 3. The Tribunal upheld the order in the light of the judgment rendered by the Tribunal in the case of CCE, Coimbatore v. M/s. South India St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this category of manufacturers and they have been exempted from the requirement of production of gate pass etc. evidencing payment of duty in respect of the inputs in question taking into consideration the ground realities in regard to purchase (of) material by them from open market. After granting the facility to such of those manufacturers, the question is when they exceed Rs. 75 lakhs whether they will continue to be eligible to the benefit. We observe that the facility has been accorded to a category of manufacturers whose operation going by the parameters of clearance in the past year and the year in question in which the inputs are received and taking into consideration their mode of purchase etc. The character of their operations by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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