TMI Blog1997 (8) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is directed against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), New Delhi upholding the decision of Deputy Commissioner of Central Excise, New Delhi demanding Central Excise duty of Rs. 2,77,090/- consequent to disallowing of Modvat credit taken by the appellant. Such disallowance was on the ground that the appellant being entitled to the benefit of full exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal. On this ground, it was pleaded that the impugned order be set aside and the appeal allowed. 3. Opposing the plea of the learned Counsel, Shri V.R. Sethi, learned Departmental Representative supported the impugned order placing reliance on the express wording of the Rule 57C. He pointed out that this Rule makes credit non-permissible if the final product made by using the inputs on which c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... open to the appellant to take the credit when they were eligible for full exemption. He pleaded that the order-in-appeal may be upheld and the appeal dismissed. 4. The arguments of both the sides have been duly taken note of by me. It is seen that in the present case Modvat credit had been taken by the appellant and utilised for payment of duty on the final product cleared by them in the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I account or by recovery of the sum separately if the same is not available in the account, having already been utilised for payment of duty. In the present case, since the amount of credit was in fact utilised for payment of duty of goods which are admitted by the Department to be eligible for exemption and hence not liable for duty, utilisation of such credit for payment of duty thereon would se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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