9911796707
TMI Blog2000 (4) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... . - The applicants, manufacturers of Silica Gel etc. falling under Chapter 38 of the Central Excise Tariff Act, were availing the facility of Modvat credit on inputs during the financial year 1994-95. They had opted out of the Modvat scheme and switched over the scheme of SSI exemption for annual clearances up to Rs. 30 lakhs w.e.f. 1-4-1995 under Notification No. 1/93-C.E. as amended. At the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner. During the adjudication proceedings, the party conceded their liability to reverse the credit taken on the inputs found as such in stock and also on the inputs contained in the finished products found in stock at the time of their switch-over to the SSI exemption scheme. The question which survived for adjudication was whether the credit to the tune of Rs. 83,188.80 taken by the party on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order and connected records. I have also heard ld. Advocate Shri Amit Awasthi for the applicants and ld. DR Shri T.A. Arunachalam for the Respondent/Revenue. Ld. Advocate has reiterated the grounds of the appeal and has emphatically submitted that Rule 57H(5) ibid did not require the applicants to reverse the credit of duty paid on the inputs which were under processing at the time of op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption scheme was liable to be reversed. In support of this submission ld. DR has relied on decision of this Tribunal (Larger Bench) reported in [1999 (107) E.L.T. 557 (T) = 1999 (30) RLT 519]. The Larger Bench, in that case, held that Modvat credit taken in respect of inputs which were in stock as well as in respect of inputs used in the manufacture of final products which had become exempt was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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