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TMI Blog2007 (8) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ants - Appeal No. E/375/2001 - Final Order No. 977/2007 - Dated:- 6-8-2007 - [Order per : P.G. Chacko, Member (J)]. - Appeal No. E/375/2001 is against an order of the Commissioner (Appeals) allowing (sic) Modvat credits on capital goods totalling to over Rs. 1.2 crores to the appellants and imposing on them a penalty of Rs. 1 lakh. The appellants had received plates and sheets under Rule 57F( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants ought to have cleared the auto parts manufactured out of such material, without payment of duty under Notification No. 214/86-CE ibid. According to them, the auto parts were exempt from payment of duty of excise and, therefore, no credit of duty paid on capital goods used for the manufacture of such goods was admissible to them. Reference was also made to Rule 57R(1), which provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to follow the procedure under Notification No. 214/86-CE and was at liberty to return the goods processed by them to the principal manufacturer on payment of duty. It is pointed out that this decision of the Tribunal was affirmed with the dismissal of Civil Appeal Nos. 4527-4539 of 1996 (filed by the department) by the Hon'ble Supreme Court vide Collector v. Bright Steel Mac Fabrics [1997 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elled to follow the procedure under Notification No. 214/86-CE. This decision of the Tribunal was upheld by the Supreme Court vide 1997 (94) E.L.T. A145. 3. The case of the appellants is well-supported by the decision in Bright Steel Mac Fabrics (supra). In the result, the impugned order is set aside and the appeal is allowed. (Dictated and pronounced in open court) - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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