9911796707
TMI Blog2005 (8) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... ds were lying in stock : Sl. No. Description of the finished goods. 1. 3, 4, DABP 2. P.M.P. 3. Mebendazole 4. Magnesium Analgin 5. Metformin HCL 6. Mebendazole (Stage I & II) M/s. PDCL took Modvat Credit of the CVD paid on the imported raw material content in the above goods amounting to Rs. 1,95,925/- and also credit of excise duty paid on the indigenous raw material content in the above goods amounting to Rs 2,39,927/-. Thus, on the date of de-bonding, they took total credit of Rs. 4,35,852/-. This credit was proposed to be disallowed to them on two grounds (i) that Modvat credit was not admissible in respect of inputs contained in the finished goods manufactured by a 100% EOU and (ii) that no credit was admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98. During the pendency of this appeal, the dispute between M/s. PDCL and the Department was settled under the Kar Vivad Samadhan Scheme, (KVSS). Accordingly, Tribunal by final order No. 909/99, dated 24-9-1999 dismissed the appeal as settled under the KVSS. In the present appeal, it is contended that the goods found in stock on the date of debonding were not finished goods, but raw materials, intermediates and semi-finished goods and, therefore, Modvat credit of the duty paid on the goods was to be allowed to the de-bonded unit. This case of the appellants which has been forcefully put forth by the learned Counsel today is being contested with equal force by the learned SDR who submits that all the goods lying in stock in the unit on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is that, as the manufacturing unit had procured all their inputs duty-free as a 100% EOU, prior to its de-bonding, there was no payment of duty on the inputs. What was paid by the party as per the KVSS settlement was duty on finished goods. No duty paid on their finished goods was available to them as Modvat credit. I have no reason to disprove this view taken by the Revenue. Admittedly, the goods lying in stock on the date of de-bonding were all finished goods and the EOU had never paid any duty on any of their inputs. Under the Modvat Scheme, input duty credit could be taken, where duty-paid inputs were received in the factory of production of final products and were utilized in such production. This substantive condition wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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