TMI Blog1996 (12) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... be utilised towards payment of duty of excise on similar final products cleared for home consumption on payment of duty. There is neither any exceptions incorporated in the said proviso nor any such exemption can be imported into it and therefore, he allowed the appeal on this count. The ld. Collector (Appeals) also held that Modvat credit on phosphoric acid used for purification is an input and therefore, is eligible for Modvat credit. On the question of caustic soda Lye the ld. Collector (Appeals) held that the appellants did not produce any documentary evidence of payment of duty and therefore, the credit of duty on caustic soda lye has rightly been denied. Being aggrieved by the order of the ld. Collector (Appeals), the present appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents herein contended that there was no provision of denying Modvat credit on the inputs used in the export product in the Modvat rules, that there was no correlation between the Import Policy and the Modvat credit taken on inputs used in the manufacture of export goods. In so far as phosphoric acid is concerned, the respondents herein submitted that phosphoric acid was an input and therefore, Modvat credit was admissible to them. After careful consideration of the submissions made, the A.C. confirmed the demand of Rs. 40,07,280.60 also holding that Modvat credit will not be admissible on phosphoric acid and caustic soda lye. The respondents therein filed an appeal before the ld. Collector (Appeals) who disallowed Modvat credit on caustic s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri J.P. Kaushik, the ld. Advocate appearing for the respondents submitted that Modvat credit is taken and availed in terms of Section AA and Rules 57A and 57G; that credit of Modvat taken is utilised as provided for under Rule 57F. The ld. Counsel submitted that both the inputs and the final product were specified for purpose of Rule 57A; that requisite declaration was filed as required under Rule 57G; that the manner of utilisation of the inputs and the credit allowed in respect of duty paid thereon is provided under Rule 57F; that Rule 57(3)(a) provides: (a) For the purpose of test, repair, refining, reconditioning or carrying out any other operation necessary for the manufacture of the final products and return the same to his factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l product for which Modvat credit of duty has been claimed on the inputs can be exported under Bond. In the instant case, the goods were exported under Bond. Now whether the import of the material as replenishment in the exported goods permits taking of Modvat or not is a phenomenon subsequent to the export of the goods in question. In the instant case, we are concerned with the export of the goods which is the phenomenon precedent to the import of replenishment material and therefore, the relevant provisions applicable to the replenishment of the material cannot be imported into the Modvat Rules. The two situation are different. We therefore, agree with the findings of the ld. Collector(Appeals) holding that Modvat credit of inputs was cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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