TaxTMI 
TaxTMI 
2000 (3) TMI 298
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.... are that the appellant manufactures HDPE/PP Tapes, fabrics and woven bags under Chapters 54 and 63 respectively. Under Section 37B of the Central Excise Act and Central Board of Excise and Customs issued an Order No. 8/92, dated 24-9-1992 classifying them under Chapter 39. The appellant was already availing Modvat credit in respect of HDPE/PPE granules for payment of excise duty on HDPE Tapes. They filed revised Modvat declaration dated 14-10-1992 and also claimed transfer of balance lying in RG 23A Part II amounting to Rs. 1,73,356.40 Basic Excise Duty + Rs. 26,002.70 Special Excise Duty under the letter dated 14-10-1992. They had shown the inputs lying in balance, inputs contents in the goods in process on 14-10-1992 and Modvat credit ly....
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.... Hon'ble Vice President, and has submitted that in the cases of M/s. Yomika Fabrics Pvt. Ltd. the same point is decided in favour of the appellant, and it clearly applies to the instant case on hand. Shri Anil B. Shukla for the appellant and Shri Deepak Kumar for the ld. SDR were heard. 1997 (96) E.L.T. 587 (Tribunal) in the case of Serampore Belting Works (P) Ltd. v. Commr. of C. Ex., Calcutta-II is relied on in support of the contention that regarding the Modvat strict correlation is not there between final product and the input contained therein, so far as utilization of credit is concerned. But input must be used in the dutiable final product. If any input is not so used, credit initially allowed would be wrong and subject to recovery u....
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....nsfer of credit balance from proforma credit account to Modvat credit. The credit is not earned on the inputs used or to be used in the manufacture of woven sacks to be cleared after 14-10-1992. With this observations the impugned order is passed to reject the appeal. 4. As per the appeal memorandum, the plastic granules are the basic raw material, purchased to manufacture tapes, and from tapes, fabrics or woven and their fabrics HDPE sacks/bags are manufactured in continuous process. The final product is HDPE sacks out of basic raw material plastic granules and HDPE tapes is an intermediate product. The classification of tapes fabrics woven bags sacks under the Central Excise Tariff Act, 1985 falling under Chapters 54 & 63 respectively in....
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....dly, plastic granules are used in the manufacture of HDPE sacks/bags, so this ruling does not help in this case. As per the written submission of the appellants the Bench order in E/2735/98 dated 5-11-1998 in the case of Yomika Fabrics Pvt. Ltd. in para 3 and 4 of the order, it is observed that plastic granules falling under Chapter 39 on which duty is paid is used for manufacture of tapes which are again used for weaving of fabrics and sacks. The change of classification in the light of the judgment of the Madhya Pradesh High Court in the case of Raj Pack Well Ltd. in Writ Petition No. 1205 of 1988 decided on 7-11-1989 [1990 (50) E.L.T. 201 (M.P.)] the Board issued an order Under Section 37B of the Central Excise Act dated 24-9-1998 is con....