2001 (8) TMI 1199 - AT - Central Excise

Summary

The judgment discusses the eligibility of Modvat credit for duty paid on inputs used in manufacturing potassium carbonate exported under Duty Drawback Scheme. The appellant's Modvat credit was challenged due to claiming drawback on exported goods. The appellant argued that there is no provision in Modvat rules to deny credit in such cases. The Board clarified that unutilized credit of Central Excise duty can be refunded if only Customs portion of duties is claimed as per the All Industry Rate of Drawback. The appeals were allowed, and the impugned order was set aside.