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2016 (12) TMI 79 - CESTAT MUMBAIMODVAT credit - SAD exemption vide notification No. 22/99-Cus dated 28-2-1999 - whether denial of modvat credit on the ground that appellant had filed declaration in connection with the availment of notification No. 22/99-Cus that this imported goods meant for re-sale, therefore they were not suppose to take credit in respect of these imported goods, justified? - Held that: - I find that entire foundation of the case for denial of modvat credit is that the appellant had filed declaration to the customs as per condition of exemption notification No. 22/99-Cus. As per the said declaration the goods are meant for resale therefore on such goods modvat credit is not available. I find that the declaration was filed in order to avail the exemption from SAD whereas appellant availed modvat credit in respect of CVD which was admittedly paid. The modvat credit rules prevailing at the material time does not bar from the taking credit of CVD if the importer availed exemption notification No. 22/99-Cus or filed any declaration to that effect. I therefore find no reason why the modvat credit on the CVD paid by the appellant should not be allowed. The fact is not under dispute that goods imported by paying CVD has either been used in the manufacture of final product which was cleared on payment of duty and/ or cleared as such on payment of duty in terms of Rule 57 F(3) of Central Excise Rules, 1944. Therefore impugned order is not sustainable - credit allowed - decided in favor of appellant-assessee.
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