TMI Blog1993 (12) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... .P. Gulati, Member (T)]. This appeal is against the order of the Collector of Central Excise, Cochin. Brief facts of the case are that the appellants are receiving the input Calcium Carbide in metal drums and the value of the package is included in the value of Calcium Carbide received by the appellants and the duty has been paid on this composite value as if it is paid in respect of Calcium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included in the value of Calcium Carbide and the total is assessed to 15%, there is proportionate amount of duty collected on the value of metal drums also and since the total duty is taken for modvat credit, proportionate amount of duty on the value of metal drums which is included in the value of Calcium Carbide has also been taken for credit, which credit is inadmissible to them by virtue of B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, not liable to pay any duty or reverse the MODVAT credit. 3. The learned SDR for the Department adopted the reasoning of the learned lower authority and opposed the prayer of the appellants. 4. We observe under the MODVAT Scheme any goods which are brought in the factory can be either utilised for the manufacture of the finished product or can even be cleared out of the factory as suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be treated as scrap generated during the course of manufacture. We observe that the MODVAT credit was taken in respect of the duty paid on the value of the goods treating the whole lot of the goods brought in as Calcium Carbide and the value of the drums was included as if it is the value of Calcium Carbide supplied. After the MODVAT credit was taken, the status of the goods changed and instea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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