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TMI Blog2009 (12) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... es, fabrics and HDPE woven sacks which were being classified under Chapters 54 and 63 of CETA, 1985. When the products were so classified under Chapters 54 and 63, they were not eligible for Modvat credit. The appellants agitated the classification under the above chapters and sought classification under Chapter 39 and also sought for the benefit of Modvat credit on the inputs. The Hon ble High Court of Madhya Pradesh vide order dated 18-2-93 directed the classification of the products under Chapter 39 and directed consideration of admissibility of credit on inputs. In pursuance of the said direction, the appellants claimed a total credit of Rs. 32,34,615/-. By order dated 13-12-99, the Deputy Commissioner allowed the credit partly and disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial duty on the finished products without issue of any show cause notice which is not legal and proper. She relies on the decision of the Hon ble Supreme Court in the case of Metal Forgings v. UOI reported in 2002 (146) E.L.T. 241 (S.C.) and the decision of the Tribunal in the case of Voltas Ltd. v. C.C.E., Hyderabad-II reported in 2006 (201) E.L.T. 615 (Tri.-Bang.). Any order for recovery as done by the Commissioner requires issuance of show cause notice under Section 11A in terms of Section 35A(3). 6. Learned SDR submits that the Modvat credit was being allowed in pursuance of the direction of the Hon ble High Court dated 23-5-02 which specifically envisages verification of documents before grant of the said credit. Similar is the direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble High Court has given direction to consider the claim for Modvat credit subject to verification of the documents produced by the appellants. A report dated 14-8-95 of the Superintendent of Central Excise, available on record has elaborately dealt with the duty payable on the final products in view of the changed classification and the amount of Modvat credit available based on the documents produced by the appellants. According to the report, the duty payable on the final product during the disputed period based revised classification is Rs. 49,45,067-96 and the duty actually paid by the appellants under Chapters 54 and 63 amounted to Rs. 45,45,976.42. In other words, if the appellant has paid the duty under Chapter 39 during the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are applicable to the present situation as well. It is not a case where the Hon ble High Court directed the payment of entire amount of credit as claimed by them. The direction was subject to verification of the documents with a view to give, basically, full effect to the re-classification of the product as sought for by the appellants. The Tribunal s order dated 29-12-2006 is also to the same effect. It is to be appreciated that the show cause notice dated 13-10-95 issued by the Department proposed disallowance of entire credit for the disputed period. The re-classification and the Modvat credit have been extended in pursuance of the order of the Hon ble High Court. 9. In view of the above, I do not find any infirmity in the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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