9911796707
TMI Blog2002 (2) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... ed into wire rods. These wire rods are removed by the noticee at 'Nil' rate of duty under the cover of the same challans under which the billets were received. The wire rods so cleared are exempted from payment of duty or chargeable to 'Nil' rate of duty. It is alleged that they are availing Modvat credit facility on furnace oil falling under Heading 2710.90. The furnace oil is used as fuel in the furnace installed in the factory. It is stated that as per the provisions of Rule 57C of Central Excise Rules, 1944, no credit of specified duty shall be allowed on such quantity of inputs which is used in the manufacture of final product which are exempt from whole of duty of excise or chargeable to 'Nil' rate of duty. The provisions of Rule 57CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sides. The ld. Counsel for the appellants submits that the appellants are manufacturing wire rods - a part of which is cleared on payment of duty and another part is cleared without payment of duty in terms of the provisions of Rule 57F(4). He submits that under the provisions of Rule 57C(1), no credit of specified duty is permissible on such quantity of inputs which is used in the manufacture of final products which are exempted from whole of the duty or are chargeable to 'Nil' rate of duty. However, it is contended that in terms of Rule 57C(2) where a manufacturer avails the credit of duty on any inputs and he is engaged in the manufacture of any final product which is chargeable to duty as well as in the manufacture of other final pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of end product cleared without payment of duty or on payment of 'NIL' duty. Shri R.C. Sankhla, JDR on the contrary argues that under sub-rule (3) of Rule 57C, the application of sub-rule (2) is excluded for fuel but there is no exclusion of the provisions of sub-rule (1) for fuel under any provisions and hence the Modvat credit availed on fuel which is used in the manufacture of exempted goods is not admissible. 6. I have carefully considered the submissions made before me by both the sides. Since there are specific provisions in the Modvat rules on the issue, legally one is obliged to refer to them and find the solution to the problem, rather than rely on the general provisions. The appellants are availing Modvat credit on the use of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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