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2014 (8) TMI 286 - AT - Central ExciseWrong availment of MODVAT Credit - It was alleged that except one grade i.e. Relene E-41003 all other grades of plastic granules could not be used in the manufacture of HDPE Pipes, conforming to the specification as ordered by the Department of Telecommunication - Adjudicating Authority dropped the proceedings initiated - Held that:- Appellants are manufacturers of HDPE Pipes and the same are supplied to DOT against various contracts. The Revenue's case is that in the manufacture of the said HDPE Pipes, the Respondent used inputs, i.e. HDPE granules/plastic granules of various grades, on which they had availed modvat credit. Taking note of a Certificate issued by the Central Institute of Plastics Engineering and Technology, Bhubaneswar, that such HDPE Pipes cannot be manufactured from the HDPE/Plastic granules, as such, other than from Relene-E-41003 grade, the modvat credit was held to be inadmissible on HDPE granules other than Relene E-41003. On the other hand, it is the case of the Respondent that they have been using HDPE granules Relene E-41003 after blending with other grades of HDPE/Plastic granules in the manufacture of HDPE pipes supplied to DOT - Appellants are blending/mixing Relene E-41003 and other grades of HDPE granules in the manufacture of HDPE Pipes, which are ultimately supplied to DOT - Department itself has acknowledged that the Appellants are blending/mixing Relene E-41003 and other grades of HDPE granules in the manufacture of HDPE Pipes, which are ultimately supplied to DOT - Decided against Revenue.
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