9911796707
TMI Blog1996 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... Lakshmikumaran, learned Counsel for the appellants pleaded that in terms of Notification 202/88 the applicants would be entitled to the benefit of the said Notification in respect of inputs used in case the applicants had not availed of the benefit of MODVAT Credit. He pleaded that the applicants are manufacturing steel tubes out of steel strips and some tubes manufactured are cleared on payment of duty while the others are cleared for consumption captively by availing the benefit of Exemption Notification 202/88. He pleaded that at the time when the inputs were received, it was difficult to identify the quantum of inputs that would be used in the manufacture of steel tubes for cycles which would be cleared under an exemption notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In this background therefore, he pleaded there is substantial compliance with the requirements of the instructions of the Board inasmuch as the applicants have reversed the MODVAT Credit within a month after the clearance of the goods. He pleaded that in this view of the matter the demand is not maintainable in law and in this connection he referred us to the ruling of the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. v. CCE, Nagpur, reported in 1996 (81) E.L.T. 3 (S.C.). He fairly concedes that in this case while the issue involved was whether the assessee would be entitled to the benefit of MODVAT Credit when the Modvat Credit had been taken and reversed before clearance of the goods. He pleaded that for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, in case they are asked to pay the duty, it should not be on the sale price which is cum-duty price but on the declared price after taking into consideration the duty element. The learned Counsel offered to make a pre-deposit of 25% of the duty demanded with the execution of Bank guarantee for the balance. Taking into consideration the pleas made and also considering the financial position of the petitioners, we direct the petitioners to make pre-deposit of 50% of the duty demanded and execute a Bank guarantee for the balance amount on or before 30-4-1996 and to report compliance subject to which we grant stay of the recovery of the balance amount. The matter will be called on 30-4-1996 for reporting compliance. X X X X Extracts X X X X X X X X Extracts X X X X
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