2002 (12) TMI 127

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..... at they purchase various parts on payment of duty of which they take Modvat credit; that the Appellants also purchase on payment of duty various parts for their Spare Parts Division (SPD) in respect of which they do not take Modvat credit of the duty; that sheet metal parts purchased for use in the manufacturing division are sometimes cleared to the SP Division; that these parts have been subjected to electro deposition coating in Order to protect them from weather conditions; that while removing such coated parts, the Modvat credit thereon is reversed as required under Rule 57F of the Central Excise Rules, 1944; that the present proceedings have been initiated on the ground that parts in respect of which Modvat credit has been taken and wh .....

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..... s upheld the removal of inputs to Spare Parts Division on reversal of Modvat credit up to 28-2-2001. Reliance has also been placed on the decision in the case of Commissioner of Central Excise, Indore v. Gwalior Electrical Industries, 2000 (122) E.L.T. 833 (Tribunal) wherein the Tribunal has held that conversion of duty- paid double paper covered wires into coils does not amount to manufacture and if the Modvat credit has been availed on duty-paid wire, the manufacture has to discharge the duty liability on wires equivalent to the Modvat credit availed of in terms of Larger Bench decision in Asia Brown Boveri case; that the Tribunal has also held that in such a case no penalty is imposable. 4. Countering the arguments, Ms. Krishna A. Mishr .....

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..... from the factory after undertaking the process of E.D. Coating, In view of this the ratio of the decision of the Larger Bench in the case of Commissioner of Central Excise, Vadodara v. Asia Brown Boveri Ltd., 2000 (120) E.L.T. 228 is not applicable as the facts are different inasmuch as the inputs were cleared as such in the said matter. It has been emphasized by the learned Counsel for the Appellants that words "as such" were not mentioned in Rule 57F at the relevant time. In our view the absence of these words does not make any difference as Rule 57F of the Central Excise Rules deals with the "Manner of Utilization of Inputs and the credit". The said Rules provides for the manner of use of inputs as under : (i)   In or in relat .....

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