2001 (3) TMI 375 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, New Delhi disallowed Modvat credit of Rs. 2,41,527/- to manufacturers of cotton yarn for cotton waste received from 100% EOU. Modvat credit was not available due to nil rate of duty under Customs Tariff Act, 1975. The Tribunal upheld the decision based on Supreme Court precedent in Collector of Customs v. Presto Industries. The appeal was rejected.