TMI Blog1999 (3) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the decision of the Commissioner (Appeals), Calcutta made in Order-in-Appeal No. 128/Cal-III/98, dated 21-9-1998. By the impugned Order he has held that there was no dispute regarding shortage of Modvatable inputs as held by the Assistant Commissioner and admitted by the appellants. Therefore appellants were not entitled to the Modvat credit on inputs which was not physically available with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against this ld. DR submits that if the inputs are never used in the manufacture of final products how could there be any Modvat credit. The declared final product should be made by usage of the input in the manufacture of such a final product. That is the theory of Modvat scheme. 3. I have considered the rival submissions. The fact appeared to be that toluene is volatile substance and if there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evaporated due to volatile nature of the input itself. And it is being stored from 1978 onwards. May be so. 5. However, the theory of Modvat is that declared input must be used in or in relation to the manufacture of the declared final product. Resorting to Rule 57D in this case, in my view, is not at all correct. The said provision deals with utilisation of the input in any waste or by-produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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