TMI Blog2003 (4) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... Cellular: 3924.11 - Of Polyurethanes 30% 3924.19 - Of other plastics 30% 3924.90 - Other 30% 2. Intelligence was received that although, the appellants had declared the manufacture of goods falling under sub-heading 3924.10 only, they were also manufacturing articles falling under sub-heading 3924.90. The articles falling under both sub-headings were taken to their duty paid godown where they were made into sets and sold. The goods falling under sub-heading 3924.90 were cleared without payment of duty and without any entries being made in the statutory registers. Shri D.B. Vora, Deputy Financial Controller in his statement accepted the manufacture and clearance of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon two documents. He referred to one letter written in 1989 and the classification list filed in 1992 and claimed that through these documents clear knowledge was obtained by the department. It is on this ground he claims that the charge of suppression cannot survive. 5. We have examined the cited documents. The assessee had written a letter dated 4-4-89 to the jurisdictional Assistant Collector of Customs. This letter is in continuation of earlier letters, which are not on record. The fact of manufacture of dutiable and duty free products and their being put together in sets is mentioned in that letter. The letter states that only two types of set attracted duty and that they were not manufacturing either set. The letter gives the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .23 All goods other than - Nil (i) of polyurethanes; If no credit of the duty paid on the inputs used in the manufacture of such goods has been availed of under Rule 57A of the said Central Excise Rules, 1944. (ii) insulated ware; and (iii) bags or sacks made out of fabrics (whether or not coated, covered or laminated with any other material) woven from strips or tapes of plastics; and fabrics for making such bags or sacks 10. Shri Rohan Shah makes submissions on two counts as to the eligibility of goods to exemption under this entry. He states that credit of duty paid on the inputs had been taken but that it was not availed of , in as much as during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the manufacture of both dutiable and exempted products. The assessee had not kept separate accounts nor had they segregated the inputs differently. The issue was whether the benefit of Notification No. 69/86-C.E. was available which notification prescribed that Modvat credit should not have been taken in the manufacture of final goods. The Hon ble Supreme Court ruled that where such credit had been taken, and where the credit so taken was later reversed, the benefit of the notification could be availed of. 14. Shri Rohan Shah pleads that at all times the assessee had in their books of account sufficient credit which could have been reversed and that offers to that effect had been made repeatedly by the assessees. The Chandrapur Magne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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