TMI Blog1997 (3) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods which were exempted from Central Excise duty were not to be taken into account for arriving at the aggregate value of the clearances during the preceding final year to determine the eligibility of exemption under that notification. The appellants were bringing duty paid wire rods and were taking Modvat credit in respect of the duty paid in respect of such wire rods. During the relevant time, the applicable rate of Central Excise duty was Rs. 365 PMT. The appellants were also manufacturing galvanised iron wires and the metal steel wires out of such duty paid wire rods. They had already taken credit of Rs. 365 PMT in respect of the wire rods. When these wires were cleared, they had paid the duty of Rs. 365 PMT. The appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of duty on the inputs received and the final product galvanised iron wires and metal steel wire was the same i.e. Rs. 365 PMT. 5. We have carefully considered the matter. Under exemption Notification No. 208/83-C.E., dated 1-8-1983 (as amended). The galvanised iron wires and metal steel wires were exempted from the whole of the duty of excises leviable thereon if they were made from duty paid wire rods [we are not concerned with other inputs and the final products]. The exemption was subject to the condition that no credit of the duty paid on the inputs had been taken under Rule 56A or Rule 57A of the Central Excise Rules, 1944. When the inputs rods were received they were duty paid and the credit of duty already paid in respect of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y excise duty if no credit had been taken. It is clear that the intention was not to charge duty twice on the wire rods and the wires in this case. 8. After reversal of the credit as held by the Apex Court it will be deemed as no credit had been taken of the duty paid on the inputs and the final products i.e. wires in this case were exempted from duty. Once they are exempted from duty then their value of clearances was not to be taken into account for the purpose of Notification No. 175/86-C.E. The appellate authority had observed that the condition of the exemption Notification No. 208/83-C.E. as amended were not fulfilled in this case because the party had availed Modvat credit for the raw materials used for the manufacture of wires and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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