TMI Blog1999 (9) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance with Sl. No. 21 of the table annexed to Notification 15/94-C.E., dated 1-3-1994. The appellants received duty paid plastic granules and availed credit of duty paid on the granules and used the granules in the manufacture of lay flat tubings falling under CET Heading 39.17, paid duty at the rate of 20% ad valorem on lay flat tubings in terms of Sl. No. l7 of the table annexed to Notification 15/94, and then captively consumed the lay flat tubings in the manufacture of tarpaulin/protective covers falling under Heading 39.26 which are cleared at nil rate of duty in terms of Sl. No. 21 of the Notification 15/94. It is the case of the Revenue that the tarpaulin/protective covers are liable to pay duty @ 30% ad valorem in terms of Sl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The appellants followed two streams for clearance of protective covers/tarpaulins - (1) credit of duty paid on granules (inputs) was taken, granules were used in the manufacture of lay flat tubings, duty was paid on lay flat tubings which were then used in the manufacture of final products i.e. protective covers/tarpaulins and no credit of duty paid on lay flat tubings was taken. Lay flat tubings and protective covers were cleared at nil rate of duty vide Sl. No. 21 of the table to Notification 15/94. (2) credit of duty paid on granules was taken, granules were used to manufacture lay flat tubings, exemption under Notification 217/86 was availed on lay flat tubings which were cleared without payment of duty, lay flat tubings were used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs. Therefore, the decision of the Hon ble Supreme Court in the case of Chandrapur Magnet Wires reported in 1996 (81) E.L.T. 3 (S.C.) wherein it has been held that if credit has been taken but the duty is debited subsequently, benefit of exemption under Notification containing condition regarding non-availment of Modvat credit cannot be denied, is directly applicable. We also find that this is the view taken in the case of Shri Ram Vinyl and Chemicals (Final order No. 659/99-C, dated 27-7-1997) and there is no difference between that case and the present case except that the inputs in the Shri Ram Vinyl and Chemicals case are plastic granules, intermediate product PVC resin and final product PVC compound. Following the ratio of the Apex Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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