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2011 (7) TMI 90 - HC - Central ExciseClassification - Notification No.4/97-CE dated 01.03.1997 - Rule 57CC (9) of the Central Excise Rules, 1944 - The finished goods and raw material found in excess of the quantity shown in the stock registers were seized by the revenue - By virtue of the said show cause notice, the respondent/assessee was called upon to respond as to why Central Excise Duty amounting to Rs.7,69,90,751/- ought not to be imposed on the alleged ground of diverting raw material / inputs on which modvat has been availed for the purposes of manufacturing goods cleared at nil rate of duty under the aforementioned exemption notification - assessee cannot seek modvat credit on inputs and have that credit adjusted against duty payable against finished goods and, at the same time, utilize those very inputs, on which modvat credit had been claimed for manufacture of finished goods by having them cleared under an exemption notification providing for a nil rate of duty - The authorities below have merely examined the issue from the point of view of the interpretation which according to them, had to be laid on Rule 57 CC (9) - A bare perusal of the show cause notice would show that it is replete with allegations that respondent/assessee diverted modvatable inputs in manufacture of exempted finished goods - Appeal is allowed by way of remand
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