9911796707
TMI Blog1998 (11) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as cups, and lids out of rigid plain plastic sheets of PVC, etc., falling under Chapter 39 of the Central Excise Tariff, while the cross objections have been filed by the respondents against his findings that they cannot opt to pay duty on finished goods which are fully exempt and are liable to pay duty on the intermediate products viz. plastic sheets as they are not entitled to the benefit of the Notification 217/86 dated 1-3-1986 since their final products were exempted from duty in terms of Notification 53/88 and holding that the respondents were not entitled to Modvat credit on plastic sheets used in the manufacture of the final products. 2. We have heard Shri H.K. Jain, learned SDR and Shri Udai Joshi, learned Counsel. 3.&em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in matters like excise duty, allocation etc. in Para 3 clearly indicates that small scale units include a small scale ancillary industry with investment in plant and machinery not exceeding Rs. 15 lakhs (the limit at the time). The letter also clarifies that the intention of the Government in providing the necessary relaxation from Rs. 10 lakhs to Rs. 15 lakhs in the capital investment in the scale of small ancillary units was to make them competent units to cater to stringent requirements of quality expected from them by the parent units through installation of costly and sophisticated machinery and makes it clear that "since the ancillary units continue to maintain their small scale status even though they cross capital investment Rs. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempt for use in the manufacture of the final product. In the case of Facit Asia v. C.C.E. reported in 1991 (54) E.L.T. 347, the Tribunal has held that the appellants who were job workers were eligible to the benefit of the credit in respect of the duty paid by them on the final product, and credit cannot be denied on the ground that they ought to have availed instead of the exemption under Notification 214/86 since the job workers cannot be forced to avail of the benefit of the Notification. In the case of Garg Industries v. C.C.E., New Delhi reported in 1996 (84) E.L.T. 495 (Tribunal). The Tribunal has extended the benefit of Modvat credit in a situation where the assessee was paying duty and availing of credit instead of availing exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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