9911796707
TMI Blog2001 (11) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Modvat scheme. They removed unprocessed tyre cord fabrics manufactured by them on payment of duty for home consumption as well as consumed them captively for the manufacture of Dipped/Processed Tyre Cord Fabrics. On the captively consumed goods, AED (GSI) of ₹ 10/- per Kg. Was begin paid and BED was exempted by virtue of Notification No. 67/95. This captively consumed goods were being used for the manufacture of the final product namely Dipped/Processed Tyre cord fabric and on which BED alone was paid since AED (GSI) was exempted by Notification No. 9/96. The appellant also purchased also purchased unprocessed tyre cord fabrics on payment of duty and availed Modvat credit. These purchased goods are also used in the manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a reported in 1999 (111) ELT 90. In this regard I have already held the view in (sic) No. 82 to 85/2000 (MPU) that credit earned on BED cannot be utilised towards AED in view of the restrictions imposed in Notification No. 5/94-CE (NT) dated 1.3.94. I do not incline to change my view in the present case also. This aspect also have been clearly examined by the lower authority in para 34 of the impugned order and I fully agree with her views in this regard. 2. Shri V. Shreedhran, Ld. Advocate for the appellants stated that Modvat credit on AED can be utilized towards payment of duty on any of their final product on which BED is to be paid. He has taken us to Rule 57F (12) as well as to the judgment rendered by the Tribunal in the case of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Duty on specified inputs . 5/94 provides for among other things, utilisation of specified duty for payment of specified duty meaning thereby Additional Excise Duty can be paid only out of credit of Additional Excise Duty. However, we find that there is Rule 57F (12) which has got two clauses-the 'non obstante ' clause as also enacting clause. The not obstante clause says that without caring for the provisions of Rule 57A and the Notification issued thereunder, in the instant case the Notification No. 5/94 or ignoring the provisions of Rule 57A and Notification No. 5/94. We note that the 'enacting' clause is that the credit of specified duty allowed in respect of any inputs may be utilised towards payments of duty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals)' Orders-in-Appeal No. 82-85/2000 - MDU (GVN) dated 16.10.2000 and set aside the Commissioner (Appeals)'s order by allowing the appeals. 6. Following the ratio of this decision as well as the decision of the Delhi bench in the case of Modi Rubber Ltd. and Ors. v. CCE Meerut (supra) and also the judgment rendered by this bench in the case of Madura Coats Ltd. v. CCE Trichy vide Final order No. 1801-1804/2000 dated 13.12.2000, we set aside the order of the Commissioner (Appeals) and allow the appeal and direct consequential relief in accordance with law. The department shall allow them to utilise the accumulated Modvat credit on Additional Excise Duty which was paid on unprocessed fabrics plus towards payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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