9911796707
TMI Blog2004 (3) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... oods. Aggrieved by this order, Revenue has come in appeal on the ground that Countervailing duty of Rs. 86,355/- availed by the Respondents/assessees on re-imported rejected goods was not legal and proper as the final product namely SSS Tapes and the goods which were re-imported due to rejection are different product. The said returned goods were slit into smaller width/size to the requirement of the customers and again the same were cleared on payment of duty. Revenue further contended that since the inputs (Synthetic Sandwich Spindle tapes) and final product (Synthetic Sandwitch Spindle tapes) after such slitting remains one and the same falling under the sub-heading 4010.10 and no new excisable product comes into existence. Revenue furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner (Appeals) has held that Modvat credit was admissible on the returned goods. Aggrieved by this order, Revenue has come in appeal on the ground that Countervailing duty of Rs. 2,32,804/- paid by the Respondents/assessees on re-imported rejected goods was not legal and proper as the final product namely SSS Tapes and the goods which were reimported due to rejection are different product. The said returned goods were slit into smaller width/size to the requirement of the customers and again the same were cleared on payment of duty. Revenue further contended that since the inputs (Synthetic Sandwich Spindle tapes) and final product (Synthetic Sandwitch Spindle tapes) after such slitting remains one and the same, falling under the sub-headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd find that the Commissioner (Appeals) has dealt with the whole issue very thoroughly and his order-in-appeal No. 23/2001, dt. 12-1-2001 is extracted herein below. This is an appeal filed by Ms. Habasit Kakoka Pvt. Ltd., Coimbatore against the order-in-original No. 43/2000, dt. 26-6-2000 issued from file C. No. V/40/30/28/2000-CF, dt. 26-6-2000 passed by the Deputy Commissioner of Central Excise, Coimbatotre-II Division. The brief facts of the case are that the appellants manufacturers of Transmission belts, Conveyor Belts and Synthetic Sandwish Spindle Tapes etc. falling under Chapter Nos. 40 and 59 of Central Excise Tariff Act, 1985. They are availing Modvat credit on the inputs and capital goods under Rule 57G and 57Q of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 86,355/- paid by them as Modvat credit. The goods in question had been re-exported after processing. There is no dispute about the eligibility of Modvat credit on the inputs. The only objection is that the description of goods received and cleared after reprocessing remains the same. There are no restrictions from taking of Modvat credit on this ground. The conditions putforth in the rules are both input and final products should be specified, there should be proper duty paid documents, declaration should be filed etc. The appellants have satisfied all these conditions and there are no dispute on those grounds. The conditions put forth in the rules are both inputs and final products should be specified. Under the Modvat rules, the Modvat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for reprocessing and returned the same to them. The appellants have paid BCD, CVD and SAD on 550.200 sq. mtrs. They took Modvat credit on the same. In the case law of Alcobex Metals Ltd. reported in 1998 (68) E.L.T. 146 (T) it is held by the Tribunal that the defective final products which have ceased to be final products are to be regarded as inputs under Rule 57A. In case of Udasee Stampings Private Limited reported in 1997 (93) E.L.T. 283 (T), the Tribunal has held that a defective goods cleared by customer under Rule 57F(1)(ii) received by the appellants under the cover of gate pass on payment of duty used as inputs in manufacturing of final products Modvat credit is available of such defective goods used as inputs and not considered as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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