2006 (1) TMI 305

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..... for the Respondent. [Order per : Chittaranjan Satapathy, Member (T)].- Heard both sides. The appellants manufacture aluminium wires, copper wires and PVC compounds. They availed Modvat credit on inputs, namely aluminium rod, copper rod, PVC compound, XLEP etc. They cleared part of their final products to their other unit for further processing under Chapter X Procedure, for which they cla .....

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..... tuation and they are not required to reverse the credit. 3. After considering arguments from both sides, we find that the normal rule is that when inputs are used in manufacture of exempted goods, duty credit becomes inadmissible. Notification No. 217/86 - C.E. appears to make an exception to this rule, to enable a manufacturer to clear intermediate products without payment of duty for further m .....

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