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2015 (6) TMI 76 - JHARKHAND HIGH COURTDenial of MODVAT Credit - Non compliance with Rule 57G of the Central Excise Rules, 1944 - Held that:- There is no breach of the Central Excise Act nor there is any breach of Central Excise Rules, 1944. Modvat credit claimed by the respondent upon certain inputs. It is not in dispute that those inputs have been brought into the factory of the respondent. It is also not in dispute that these inputs have also been utilised for manufacturing process. If these two facts have established, looking to the order in original, then it appears that there is substantial compliance of the Rules, 1944 - respondent who has claimed Modvat credit. Thus, the apprehension on the part of this appellant that double benefit may not go to the parties is uncalled for and unwarranted for the very same goods. The importer cannot claim refund of the countervailing duty as well as the manufacturer cannot get Modvat credit. This is principally true but here in the facts of the present case there is no allegation levelled by the Excise Department in their show-cause notice. Twice the benefits have been claimed, one by the importer (refund of the countervailing duty) and another by the manufacturer-respondent (Modvat credit upon the inputs). It is the case of the appellant that if one benefit is availed another is not allowed. In the facts of the present case only the manufacturer who is the respondent has claimed the Modvat credit. Even department of Central Excise is not knowing whether importer has claimed any refund of countervailing duty. It appears that the department is in search of declaration to be given by the importer, but, the fact remains that the importer has not claimed even the refund of countervailing duty. Thus, in the facts of the present case out of two persons namely importer and the manufacturer, only manufacturer is claiming Modvat credit. - Decided against Revenue.
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