9911796707
TMI Blog2008 (2) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... and Avinash Acharya, for the Appellant. S/Shri Vineet Mathur and Rishab Shancheti, for the Respondent. [Order].- These two references have been called by this Court in different reference petition arising out of the common final order of the learned Customs, Excise Gold (Control) Appellate Tribunal deciding three appeals, on the following question of law:- "Whether in the facts and circumstances of the case, the modvat credit on captive consumption of inputs can be availed by the assessee when it has fulfilled the conditions of payment of Excise Duty under S. 3A of the Central Excise Act when the goods were removed from the re-rolling Mill manufacturing inputs to forging factory under an invoice by making payment of the invoic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereinafter referred to as invoice price), and credit of the deemed duty so determined shall be allowed to the manufacturer of the final products. 3. The credit of deemed duty allowed in respect of the said inputs shall be utilised only towards payment of duty of excise leviable under the said Central Excise Act on the said final products: Provided that the credit of deemed duty in respect of inputs cleared for export under bond shall be allowed to be utilised towards payment of duty of excise on any final products cleared for home consumption or for export, on payment of duty and where for any reason such adjustment is not possible by refund to the manufacturer subject to such safeguards, conditions and limitations as may be specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for short, was availing the benefit of modvant credit in respect of re-rolled non alloy steel products, bars, flats, angles etc. classified under sub-heading no. 7214.90 of the Central Excise Tariff, manufactured in their re-rolling mills, when used in the manufacture of their final products- agricultural implements i.e. packaxe, pawarah, railway beaters etc., classifiable under Chapter 82 and 84 of the Central Excise, in their forging division. However, the benefit of deemed modvat credit at 12 percent of the price of the input, available under the Notification No. 58/97, was sought to be denied by the Department, on the ground, that they did not fulfil the conditions, subject to which the benefit of deemed modvant credit was available, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee itself also against a proper invoice, at the same price, showing it to be duly excise duty paid, and the payment is being received from forging unit, by the re-rolling unit, through necessary cheques. 6. It is notwithstanding above factual position that modvat credit is sought to be denied by the Department, on the ground that the Notification No. 58/97 postulates two different manufacturers; one being the manufacturer of the inputs, and the other being manufacturer of the final product, and that the transaction should be undertaken in the manner, strictly as provided by the explanation, comprised in the said notification, and unless all the conditions co-exist, the assessee cannot be said to be entitled to modvat credit. 7. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrectly declared in the document, then the credit would not be available. Even so far explanation is concerned on which much stress was led, all that it clarifies is what shall be the comprehensions of the 'invoice price' by providing it to mean, the price charged by the manufacturer of the input, and indicating in the invoice accompanying the said inputs, the payment for which is made directly by the manufacturer of the final products to the manufacturer of the said inputs, by cheque drawn on his own bank account, or by bank draft or by bankers' cheque. In our view, the explanation has the effect of only describing the meaning of invoice price, and it cannot be interpreted to mean to be having any effect, on the aspect, as to whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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