2004 (3) TMI 243

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..... -C.E., dated 28-9-1999 by which he has held that the appellants are required to calculate duty at 8% of the value of the final products viz., Fatty acid and Stearic acid cleared during the period from 1-9-1996 to 28-2-1997 in pursuance of the provisions of the Rule 57CC of the Central Excise Rules. The demands has arisen on account of the fact that the Modvat credit availed in respect of inputs go .....

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..... the manufacture of exempted final goods. They rely on the Apex Court judgment rendered in the case of Chandrapur Magnet Wires (P) Ltd. v. CCE [1996 (81) E.L.T. 3 (S.C.)]. 2. Ld. Counsel submitted that the issue is also covered by Board Circular No. 591/28/2001-CX., dtd. 16-1-2001 wherein they have laid down the criteria for recovery of amounts which are not duty paid under the provisions of Rule .....

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..... reful consideration of the submissions made and the perusal of the judgment and Circular referred to above, we notice that the appellants have made out a case in their favour. They have already reversed the credit of duty utilized in manufacture of exempted goods. Therefore, the demands raised cannot be confirmed and requires to be set aside. Furthermore, for the relevant period there was no provi .....

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