9911796707
TMI Blog1999 (2) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of aluminium extrusions. The manufacturing facilities consist of Pot Rooms, where metal is manufactured in the molten stage; a Cast House, where molten metal is converted to Billets and an Extrusion Plant, where billets are used to manufacture various types of Extrusions. At times, the extrusions cleared by the applicants are being returned to the applicants by the customers, since these extrusions are not acceptable to them on grounds of quality. The returned extrusions are re-cycled/remelted to recover the metal and further used in the manufacture of extrusions. 3. The Superintendent of Central Excise, INDAL Range, took the stand that the Modvat credit availed by the applicants in respect of extrusions received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive in nature i.e. the document prescribed for taking Modvat credit did not accompany the goods when the same were returned. Once the goods had been cleared from the applicants' factory thereafter these emerged out from the mass of goods available in the country and unless the buyers were functioning under the Modvat regime the Central Excise authorities could not have exercised any control and there could not be any verification whether the goods returned were the same as moved from the applicants' factory or any other goods. The documentation has been provided to ensure that there is no misuse of the Modvat facility and unless the documents were as per the requirements of law the same therefore could not have been accepted. In the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to the Modvat credit in question on the defective/rejected goods returned to the applicants by their non-Modvat and non-manufacturer customers. 2. Whether the scheme providing for Modvat permits availment of Modvat on the duty paying document of the manufacturer itself in case of return of goods by the customers on account of rejection? 3. Whether the scheme providing for Modvat contemplates that a valid duty paying document ceases to be so valid on receipt of the same by the purchaser as found by the appellate Tribunal? 4. Whether the substantial benefit of Modvat in question could be denied on the ground that the correct procedure was to have applied for a refund under Rule 173L which would have been admit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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