9911796707
TMI Blog2000 (10) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... facts giving rise to this appeal may briefly be stated as under : 3. The respondents are engaged in the manufacturer of concrete sleepers falling under Chapter Heading 6807.00 of the CETA. They had been availing the Modvat credit facility on various inputs under Rule 57A of the Central Excise Rules. They were served with three show cause notices. One dated 30-11-1993 for payment of duty of Rs. 11,960/-, second dated 13-4-1994 for payment of duty amount of Rs. 9,900.00 and the third dated 5-10-1994 for Rs. 9,900/- on the allegations that they manufactured cement cubes classifiable under sub-heading 6807.00 of the CETA and utilised the same without payment of Central Excise duty or without reversing the proportionate credit availed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and that the respondents were liable to pay the duty thereon. In the alternative he has also contended that in case the concrete cubes are not taken to be excisable being not marketable, the respondents are liable to reverse the Modvat credit proportionately availed by them on the cement used in manufacturing the same, having not paid any duty thereon. 5. On the other hand, the learned counsel for the respondents has argued that being not marketable cement concrete cubes cannot be subjected to levy of the duty and even the Modvat credit cannot be denied to the respondents on the inputs used for manufacturing the same, under Rule 57D of the Central Excise Rules. 15. We have heard both the sides and gone through the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts shall not be denied or varied on the ground that part of the inputs is contained in any waste, refuse, or by-product arising during the manufacture of the final product, or that the inputs have become waste in or in relation to the manufacture of the final product whether or not such waste, refuse or by-product is exempt from the whole of the duty of excise leviable thereon or is chargeable to nil rate of duty or is not specified as a final product under Rule 57." But this Rule has no application to the case of the respondents. The cubes are manufactured by them out of the same concrete mixture from which they manufacture concrete sleepers for supply to the Railway. These cubes are distinct and identifiable goods and are utilised by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, is no ground for allowing the respondents to claim the Modvat credit on the inputs. This waste does not arise during the manufacture of the sleepers but rather independently and the expenditure incurred thereon, is also included in the price of the concrete sleepers by the respondents. 8. Therefore, the view taken by the Commissioner (Appeals) that the respondents cannot be denied Modvat credit in respect of the inputs used in the manufacture of the concrete cubes under Rule 57D of the Central Excise Rules, cannot be subscribed and must be held to be erroneous in law. 9. In Chandrapur Magnet Wires (P) Ltd. v. CCE., Nagpur [1996 (81) E.L.T. 3 (S.C.)], it has been ruled by the Apex Court that Modvat credit can be claimed on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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