TMI Blog1994 (6) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... T/86 claiming therein (i) complete exemption from levy of duty upto the limit of Rs. 15/30 lakhs in terms of Notification No. 175/86, dated 1-3-1986 in respect of Leather Nylon Sandwich Belting, Leather Nylon Condenser Tape and Woven Fabric Beltings and (ii) benefit of Modvat scheme in respect of Synthetic Rubber Nylon Sandwich Belting, Autoleveller belts and wastes thereof. Thereafter on 23-6-1986 they filed Classification List No. 59/KPT/86 effective from 2-4-1986 seeking withdrawal from Modvat Scheme and claiming total exemption from levy of duty upto the limit of Rs. 15/30 lakhs in terms of Notification No. 175/86, dated 1-3-1986 in respect of Nylon Sandwich Belting Autoleveller belts and wastes thereof. By his order dated 22-10-1986 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they had also reversed the credit of Rs. 462/- availed by them by making the payment of an equivalent amount through their PLA. He submitted that under these circumstances it could not be said that Modvat credit was availed of by the appellants. He contended that the impugned order was illegal since the appellants not having availed the Modvat concession were eligible for the exemption under Notification No. 175/86. In support of this contention he cited the following case law : (i) R.S. Joshi v. Ajit Mills Ltd. - 1977 (40) STC 497 (ii) Roman Boards Ltd. v. Collector of Central Excise - 1988 (36) E.L.T. 615. 3. On behalf of the respondents, Shri Sharad Bhansali, SDR stated that notwithstanding the reversal of the credit by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed below : 6. The question whether a manufacturer having once exercised his option to operate under the MODVAT Scheme would be legally in a position to opt out of it before the end of the financial year was considered and settled by this Bench of the Tribunal in the order relied upon by the learned Counsel. The Tribunal had found that MODVAT Scheme is covered by Rules 57A to 57J of the Central Excise Rules, 1944 and that a perusal of these rules showed that there is nothing in these rules to indicate that the option by the manufacturer to operate under MODVAT Scheme should be given only at the beginning of the financial year or that once having opted to come under that Scheme he can choose to go out of it only at the end of the financial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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