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TMI Blog2005 (2) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the case of Eveready Industries India Ltd. v. CCE, Allahabad [ 2000 (2) TMI 152 - CEGAT, NEW DELHI] , the goods were received by the assessees and the issue involved was whether packing or forwarding charges should have been included in the assessable vable of the inputs. In the present matter, as observed by us, no goods have been received. Further, the Division Bench of the Tribunal has held in NTTF Industries Ltd.[ 2004 (3) TMI 540 - CESTAT, BANGALORE] that no duty is required to be paid on design and development charges nor the charges are excisable goods and, therefore, the question of allowing the Modvat credit of duty paid on such charges does not arise. Accordingly, we set aside the impugned Order in respect of allowing the Mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by them in respect of M.S. tubes on the ground that as no manufacturing process has been carried out, they are not eligible to avail of the MODVAT Credit; that the view taken by the Revenue is contrary to the Instructions issued by the Board, vide Circular No. 283/117/1996-C.X., dated 31-12-1996 wherein it has been clarified that the MODVAT Credit in R.G. 23A Pt. II account against the export of inputs as such under bond can be utilised in the same manner as it is provided for a final product under proviso to Rule 57F(4) of the Central Excise Rules, 1944 and obviously it follows from this that such inputs should be allowed to be exported under bond without any reveral of the credit. Reliance has also been placed by the learned Chartered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which the goods are subjected before being removed does not amount to manufacture, the manufacturer shall pay an amount equal to the Cenvat credit taken under sub-rule (1) of Rule 16; that the Commissioner (Appeals), in the impugned Order, has wrongly allowed the assessee to pay the duty only as scrap; that as the returned goods have been cleared by applying the process which do not amount manufacture, the entire Cenvat credit has to be reversed in terms of the provisions of Rule 16(2) of the Cenvat Credit Rules, 2002. The learned Chartered Accountant, on the other hand, submitted that during the course of being repaired/re-processed, the returned goods got damaged to such an extent that the same cannot be used for the purpose for which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had also availed of the CENVAT Credit on the strength of invoice No. 114, dated 29-9-2001 in which description of the goods was shown as dismantling and re-erection including consumable ; that this shows that no new goods were received by the assessee on which the credit can be availed of; that labour charges are not subject-matter under the Central Excise law independently. The learned SDR relied upon the decision in the case of CCE, Bangalore v. NTTF Industries Ltd. - 2004 (169) E.L.T. 92 (T) wherein it has been held that design and development charges are not excisable goods and no Central Excise duty is payable and MODVAT Credit is not allowable; that, thus, the reliance by the learned Commissioner (Appeals) on the decision of the CCE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra), the goods were received by the assessees and the issue involved was whether packing or forwarding charges should have been included in the assessable vable of the inputs. In the present matter, as observed by us, no goods have been received. Further, the Division Bench of the Tribunal has held in NTTF Industries Ltd. (supra) that no duty is required to be paid on design and development charges nor the charges are excisable goods and, therefore, the question of allowing the Modvat credit of duty paid on such charges does not arise. Accordingly, we set aside the impugned Order in respect of allowing the Modvat credit on dismantling and erection charges. 8. The learned Chartered Accountant has also submitted that the penalty imposed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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