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TMI Blog2005 (6) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of final product exempt from whole of excise duty leviable or chargeable to nil rate of duty. Records were maintained. On scrutiny of the records, it was noticed that no raw material for production of dutiable excisable goods was received and the respondents were engaged in the processing any of inputs/semi processed goods on job work basis received under cover of challans under Rule 57F(4) from another unit. The goods processed were being returned to that unit under Rule 57F(4) challans and no duty was discharged as on removal of the goods from the respondents factory exemption under Notification No. 214/86 was available. A Show Cause Notice was issued proposing to recover to credit availed under Rule 57U read with section 11A. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner denied the credit once again in the de novo proceedings. In appeal, the Commissioner (Appeals) held as Follows : 5. Further the appellant stated that the components manufactured by the appellants on job work basis were used in the manufacture of part appellants of Motor Vehicles on which duty was paid by ACGL. The appellants have the choice to pay duty on the goods manufactured out of the raw material supplied and therefore appellants could have paid duty on the components manufactured and supplied to ACGL in view of the various decisions of the Tribunal and in such a situation they could have utilized the credit on the capital goods and ACGL would have availed the duty paid on the components. The department could not have ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the case of Bajaj Tempo Ltd and Notification No. 214/85 and No. 217/86 were similar and rule 57C were para materia Rule 57R and ANGL who are manufacturing dutiable final product would be entitled to the credit of capital goods in terms of Rule 57S (5). He therefore allowed the assessee s appeal, setting aside the order of the Deputy Commissioner passed in remand. Hence this appeal by Revenue. 2. Revenue has taken following grounds : (i) The Commissioner (Appeals) has erred in concluding that Notification Nos. 217/86 and No. 214/86 and Rule 57C para materia. Rule 57R has not taken into account. The provisions of Rule 57R provided that in case final products are exempt from payment of duty or attract nil rate of duty then credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work of payment of duly and taking of credit, when goods were being consumed within the premises or sent out to another premises on job work. The notifications having been issued to supplement and enable the implementation of the provisions of the Modvat procedure rules cannot be a cause to deny Modvat credit. We find no infirmity in the Commissioner (Appeals) order in having found the mutuality in the two notifications and pari materia Rule 57C and Rule 57R. 4. We also find that there is no valid ground to deny the benefit of capital goods credit to M/s ACGL as arrived at by the Ld. Commissioner (Appeals) and in view of grounds taken before us and transfer of the same as per law is allowed. 5. In view of the findings arrived, no me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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