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TMI Blog2004 (1) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of manufacture, intermediate products viz., Cotton Carded or Combed Cotton classifiable under 52.02 of CETA arises. These are called preparatory stages for manufacturing cotton yarn. The appellants had claimed Modvat Credit for ₹ 1,55,800/- as duty paid on the draw frame which is directly used in the manufacturing of intermediate products, namely, sliver. They manufacture Cotton Polyester Blended Yarn and Cotton Acrylic Blended Yarn. The Commissioner ordered for recovery of the amount utilised by them as Modvat Credit on the ground that these preparatory products falling under Chapter 52.05 had not been specified in the Annexure to Rule 57Q of Central Excise Rules. The Commissioner has noted that the machinery in question is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arn. He submits that the issue being covered by both the orders, the appeal is required to be allowed. 3. Ld. JDR Shri Mani reiterates the submissions as taken by the Revenue. He left the matter to the Bench to decide the case in terms of the citations produced. 4. On a careful consideration, I notice that the issue is no longer 'res Integra' and the matter has been decided by this Bench in the case of CCE, Thiruchirapalli and Coimbatore vs. M/s.Sudarshanam Spinning Mills Ltd. and Others. The findings recorded in Paras 8-9 are reproduced below:- "We have carefully considered the submissions made by both the sides. The only issue that arises for our determination in all these appeals is whether Modvat Credit of duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e it clear that intermediate products have come into existence cannot be a reason to vary of deny benefit of Modvat credit on the capital goods, provided the final product is dutiable. In the instant case, admittedly the final products viz., Cotton Yarn is chargeable to duty. In the back ground of the fact that intermediate products did emerge and emergence of such intermediate product cannot vary or deny the benefit in respect of the capital goods, as provided under Rule57R (2), just because such intermediate products of credit in respect of such intermediate products have been included on a later date cannot lead to a conclusion that prior to the date of inclusion, the benefit of credit cannot be given. So far as the marketability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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