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TMI Blog2010 (4) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... r rolls, in the obtaining circumstances of the case. Thus, the question of law raised in this appeal is accordingly answered in favour of the assessee and against the-revenue. - Central Excise Appeal No. 96 of 2005 - - - Dated:- 6-4-2010 - Ashutosh Mohunta and Mehinder Singh Sullar, JJ. Shri Gurpreet Singh, Sr. Panel Counsel, for the Appellant. Shri M.P. Devnath, Advocate, for the Respondent. ORDER Invoking the provisions of Section, 35-G of the Central Excise Act, 1944 (for brevity the Act ), the revenue has directed the present appeal against the impugned order dated 24-11-2004 (Annexure A2) [2005 (180) E.L.T. 99 (Tri.-Del.)] , vide which the Customs, Excise and Service Tax Appellate Tribunal has accepted the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts and Rule 57AB of the Rules allows the duty (Cenvat credit) in respect of inputs which are to be used in manufacture of final product. According to the assessee, it has purchased the partially oriented yarn as an input to manufacture the intermediate product, which in turn, is used to manufacture Zip Fasteners in its factory and has legally and rightly claimed the Cenvat credit. It will not be out of place to mention here that the assessee stoutly denied all other allegations contained in the show cause notice and prayed for its reversal. 4. The detailed explanation put forth by the assessee did not find favour and the Commissioner, Central Excise disallowed the Modvat/Cenvat credit, ordered its recovery alongwith interest, confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, is not only devoid of merit but misplaced as well. No doubt, Rule 3(6)(d) provides that the CENVAT credit of the duty paid on the inputs shall not be allowed in respect of texturised yarn of polysters manufactured by an independent texturiser, who does not have the facility in his factory for manufacture of partially oriented yarn of polysters falling under the indicated :category but the same would not come to the rescue of the revenue, in this relevant connection. 9. As is evident from the record that in the instant case, the assessee is manufacturer of final product of Zipper rolls and Fasteners. During the process of manufacture of said Zipper Fasteners, the assessee is required to send certain inputs to the job worker for inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty paid on inputs lying in stock or in process or inputs contained in the final products lying in stock on the date on which any-goods cease to be exempted goods or any goods become excisable. 12. Moreover, a Division Bench of this Court in case Commissioner of Central Excise, Ludhiana v. Ralson India Limited - 2006 (202) E.L.T. 759 (P H) = 2008 (10) S.T.R. 505 (P H), has held that since the factum of duty paid character of the inputs and their receipt/utilization in the manufacture of final product have not been disputed, so, the requisite condition contemplated in the modvat credit scheme was admissible. It was also ruled that being a beneficial legislation, its object of input duty relief to a manufacturer should not be defeated on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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