TMI Blog1992 (12) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the order-in-original dated 25-2-1991 passed by the Assistant Collector of Central Excise, Khardah Division, Calcutta-II Collectorate while rejecting their appeal to him. It was held in the impugned order that they were not eligible for the benefit of deemed Modvat Credit in terms of the deemed credit order dated 1-6-1989 as no credit was admissible under the said order if the inputs are clearly recognisable as being non-duty paid or wholly exempt from duty or charged to nil rate of duty. 2. S/Shri S.K. Bagaria and P. Banerjee, learned Advocates appeared for the Petitioners. Shri Bagaria arguing the case of the Petitioners referred to the following decisions on the scope of the expressions, charged to nil rate of duty and clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from this angle. He had refused to accept their plea based on the Tribunal decisions in Arun Springs and other cases on the ground that that decision has been challenged before the Supreme Court. Simply on that ground, it is not open to the Collector to refuse to follow the said decision. That will be a case of judicial impropriety not to follow a valid precedent. The decision of the Supreme Court in Kamalakshi Finance Corporation reported in 1991 (55) E.L.T. 433 would be relevant in this regard. Sri Bagaria conceded that there is a contrary decision of this Bench in Ma Tara Rope Works reported in 1991 (54) E.L.T. 360 on the scope of deemed credit order and of the expression, clearly recognisable as non-duty paid or charged to nil rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be available for inputs exempt from duty. In the present case, however, the order specifically excludes inputs wholly exempt from duty. Such an expression (wholly exempt from duty) does not mean goods wholly and unconditionally exempt from duty. Conditionally or otherwise, as long as goods are wholly exempt from duty, they stand excluded from the deemed credit order. The question posed by the learned Counsel about the discrimination involved that if they get the exempted inputs from a manufacturer there is no Modvat credit while they would be eligible to get the benefit of deemed credit if they first get the lead scrap and take the credit and then send the same to the job worker under Rule 57F for the manufacture of the intermediate pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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