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2009 (7) TMI 842 - HC - Central ExciseDemand - MODVAT credit - The show cause notice was only in respect of the reversal of MODVAT credit on the ground that the input was exempted and as such could not have been utilized - No show cause notice was issued to the Petitioner on the ground that the Petitioner had wrongly claimed the credit than what the Petitioner was entitled to - The Petitioners in their reply to the show cause notice where it has been set out that the goods under the heading 59.03 are manufactured by three different processes viz. Coating, impregration and lamination. The Petitioners used lamination method - In such method resin is first used to manufacture PVC film/sheets which is then used as an input in the manufacture of artificial leather cloth - The assessee in the instant case had claimed credit towards payment of duty on final product PVC sheet/film as an input for manufacture of artificial leather cloth. Exemption under Notification No. 217/86-C.E, is only applicable in respect of the credit taken on inputs falling under Heading No. 39.04 when utilized for payment of duty on the goods falling under Heading 59.03. This restriction is not applicable in the case where duty paid on the goods falling under Heading 39.20 is taken and utilized for payment of duty on the goods falling under heading 59.03 - Hence the order of the tribunal directing Assistant Commissioner to communicate to the appellant duty required to be paid being without jurisdiction is set aside.
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