TMI Blog1992 (7) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Rules. The facts of the case for the purpose of disposal of the appeal are that the appellants filed a modvat declaration on 24-3-1987 in respect of the inputs viz. cement, which are used in the manufacture of final product viz. asbestos fibre pipe. They had a stock lying with them prior to the filing of the declaration, some of which are in the process and some of which are already used in the final product and the final products are in stock. After verifying the stock declaration, from the relevant registers for inputs in process and also stock of final product, the Assistant Collector allowed their request for taking modvat credit in respect of the stock of inputs lying in balance, in respect of inputs contained in the process mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rifiable stock of inputs, modvat credit is admissible under Rule 57H is not tenable. He also pleaded that the Assistant Collector has gone through all the records and has come to the satisfaction that the credit has to be allowed not only in respect of stock lying but also in respect of stock inputs contained in processed material and in the final product prior to the filing of the declaration. Neither the Collector (Appeals) nor the appeal from the Revenue held the factual position to the contrary. He, therefore, pleaded for setting aside the order of the Collector (Appeals). 3. Shri Naik, the Ld. JDR for the Department supported the order and pleaded that subsequently an amendment has been made to Rule 57H deleting clause (ii) of sub-ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of final product, which have been cleared from the factory on or after 1-3-1987. Hence, when clause (ii) aforesaid was available, verification of inputs contained in final products cannot be done by physical verification of inputs but has to be done only on the basis of the records regarding utilisation of the inputs in the final product which are cleared on or after 1-3-1987. In view of this position, we find that the objection taken by the Collector (Appeals) is not tenable. Since the factual position regarding the existence of inputs as such in stock as also in processed and contained in the final product, as verified by the Assistant Collector is not disputed, the order of the Assistant Collector is required to be upheld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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