TMI Blog1999 (11) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... er (T)]. This application was converted into final hearing of the appeal with the consent of both sides, after granting formal waiver of the duty confirmed of Rs. 5,97,386/-. 2. The appellants manufactured motor vehicles falling under headings 8702, 8703, 8704 and 8706. They filed declarations as required under Rule 57G of the Central Excise Rules, 1944 on 29-12-1986. The detailed declarat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mands were issued and allegations as to penalty were made. The Commissioner having confirmed the demands, the assessees filed an appeal before the Tribunal. The Tribunal in their order observed as follows :- It cannot be disputed that if an input is used in the manufacture of more than one final product, the credit taken on that input may be used towards payment of duty on either of these final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availment in the case of common inputs which were used in both varieties of the motor vehicles but denied the claim where the credit was taken for inputs to be used in one variety which credit was used for payment of duty on the other variety. On this ground he reduced the original demand from Rs. 43.05 lakhs to Rs. 5.97 lakhs. The appeal is against this order. 4. We have heard Shri C.S. Lodha, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. 181. In this case it was held that the credit allowed in respect of any input could be utilised towards payment of duty on any of the final products for the manufacture of which the inputs were intended to be used. The input in the cited case was scrap. The final products were steel ingots as well as scrap. The claim of the department was that the credit availed on the duty paid input scrap co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other manner also, this entire exercise is futile. The Modvat credit which is accumulated on account of one vehicle would remain with the assessees and would be capable of discharging the burden of duty on the product even if it is restricted. Therefore, using the input in this manner, there is no loss of revenue and therefore the ground of demand also is taken away. 8. On consideration of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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