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TMI Blog2003 (2) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... ne Terepthalate (Polyster Polymer Chips) and avail of Modvat Credit of the duty paid on the inputs under Rule 57A of the Central Excise Rules, 1944; that a show cause notice dated 1-1-1996 was issued to them for recovering Modvat Credit wrongly taken by them and for imposing penalty as they had cleared their final product Polyster Polymer Chips at nil rate of duty against C.T.-2 Certificates issued under Notification No. 49/94-C.E. (N.T.); that the Asst. Commissioner under Adjudication Order No. 61/2000, dated 13-10-2000 allowed the Modvat Credit on the ground that the restriction of non-availment of Modvat Credit on inputs used in export goods envisaged under Rule 57-C is not applicable as the final products cleared for export/deemed expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r exempted from payment of whole of the duty leviable thereon nor are chargeable to nil rate of duty as the goods are cleared in terms of Notification No. 49/94-C.E. (NT) which is not an exemption notification; that the said notification has been issued under the provisions of Rule 13 of the Central Excise Rules, 1944 and not under Section 5A of the Central Excise Act. Reliance has been placed on the decision in the case of High-Tech Carbon v. CCE, Allahabad, [2000 (137) E.L.T. 90 (T) = 2001 (47) RLT 803 (CEGAT)] and CCE, Ahmedabad v. Omkar Textile, [2002 (148) E.L.T. 461 (T) = 2002 (51) RLT 988 (CEGAT)]. 4. We have considered the submissions of both the sides. Rule 57-C of the Central Excise Rules provided at the relevant time that no Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in respect of final products cleared without payment of duty under Rule 13 for use in manufacture of goods to be exported, Modvat Credit of duty paid on inputs cannot be denied because clearances under Rule 13 cannot be equated with the clearances at nil rate or exempted envisaged in Rule 57-C. The Tribunal had referred to the decision in the case of Hindustan Petroleum Corporation v. CCE [1995 (77) E.L.T. 256 (S.C.) = 1995 (8) RLT 877 (S.C.)] wherein it has been held that under Rule 13 of the Central Excise Rules, liability to pay Excise duty does not vanish and goods do not become totally exempt from payment of Excise duty . Similar views were expressed in the case of Omkar Textiles (supra) wherein the goods were cleared without paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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