1991 (4) TMI 238

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..... er : V.P. Gulati, Member (T)]. -  In these two appeals the issue involved is a common one and therefore they are taken up together for disposal today. 2. The short point that calls for our consideration is whether the appellants herein who are availing of the benefit of Notification No. 175/86 in respect of certain specified commodities can avail of the benefit of Modvat credit in respect o .....

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..... e Modvat and also the parameters of the Notification No. 175/86 have held as under: "There is no dispute that the appellants as a manufacturer are covered by the said Notification 175/86. The dispute is in regard to the applicability of the provisions contained in sub-clause (a)(i) as set out above. A reading of the said sub-clause (a)(i) would show that where a manufacturer avails of the credit .....

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..... the total impact of duty in respect of finished goods. Under the Modvat scheme in case a finished goods paid duty the duty to the extent paid on inputs and used for those finished goods is given as credit for being utilised for payment of duty. Under Notification 175/86 the benefit is available to individual specified goods as set out in the Notification and what is envisaged in sub-clause (a)(i) .....

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..... d only in the context of the goods for which MODVAT credit is availed of and not for other goods. In view of this we hold that since the appellant had not availed of the benefit of MODVAT credit in respect of the inputs used in the goods other than those falling under Tariff Heading 3208, they should be given the full benefit of the exemption as would be available otherwise as if the MODVAT credit .....

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..... pellants' case, observe that there is no bar to the availment of the Modvat credit when the appellants are also availing of the benefit of Notification 175/86 so long as the conditions as stated above are satisfied. Accordingly we remand the matter to the lower authority for the limited purpose of verification in regard to the above. The appeal are thus allowed by way of remand.
Case laws, Dec .....

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