2007 (3) TMI 486

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..... appellants. Accordingly I have heard Shri U.H. Jadhav, ld. JDR appearing for the Revenue and have gone through the impugned orders passed by the Commissioner (Appeals) vide which he has reversed the Order of Joint Commissioner by accepting the Revenue s appeal filed before him in the case of Force Motors Ltd. and has upheld the order in the case of M/s. Jaya Hind Industries Ltd. The effect of bot .....

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..... ty amount. As such, the authorities below held that the excess credit availed by the appellant should be reversed by them. 3. In view of the above, proceedings were initiated against M/s. Force Motors Ltd. However, the same were dropped by the Asstt. Commissioner on the ground that the appellant had taken the credit of the duty actually paid by the input manufacturer, who had not sought any refu .....

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..... id by him in excess then what was required to be paid by him. In terms of provisions of Rule 57A, an assessee is entitled to take the benefit of Modvat credit of duty paid and not payable . The above distinction is important inasmuch as the purpose of Modvat is to reduce the cascading effect of duty by allowing the input receiver to avail the same quantum of duty as credit which stands paid by .....

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