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TMI Blog2005 (4) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... puts. Their manufacturing activity is coating of Poly Vinyl Chloride (PVC) on processed fabrics (input). During the periods of dispute (between August l997 and February 2000), the appellants had received processed cotton fabrics (Heading 52.07) for manufacture of coated fabrics and had taken Modvat credit on the input (processed fabric). The credit so taken was of the duty shown in the relevant invoices issued by the input supplier. But only 50% of this duty had been paid from PLA by the input supplier, the remaining 50% having been paid by them by availing deemed credit under Notification No. 29/96-C.E. (N.T.), dated 3-9-1996. Insofar as this 50% of duty on input paid by its manufacturer through deemed credit is concerned, the burden of du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed by ld. Commissioner (Appeals) as already indicated. 2. Heard both sides. Ld. counsel for the appellants raised a preliminary objection. He submitted that the only remedy available to the department against the orders passed by the Dy. Commissioner was to file appeals with the Commissioner (Appeals) under Section 35 of the Central Excise Act. According to him, the impugned order passed by the Commissioner (Appeals) under sub-section (4) of Section 35E of the Act is without jurisdiction. This argument was vehemently contested by ld. DR, who submitted that the appropriate remedy for the department against the orders of the original authority was under Section 35E(2) only and recourse was duly taken to this remedy. I find that ld. Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly, to the benefit of the said Notification. If they are allowed to avail credit of that duty on input which was paid by its supplier by availing the benefit of deemed credit, the appellants would be virtually availing the benefit of the Notification. Moreover, the very purpose of Modvat scheme (avoidance of cascading effect) would be defeated. The Notification did not contemplate any direct or indirect benefit of deemed credit to the appellants, nor did the Modvat scheme permit the appellant to avail that benefit contrary to the very purpose of the scheme. Hence I am of the considered view that the appellants were not entitled to avail the credit in question. 4. The impugned order is upheld and these appeals are dismissed. (Objectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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