TMI Blog2001 (12) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... he second. During the material periods, the appellants cleared (under Chapter X procedure) the caustic soda lye produced by the first unit, without payment of duty, to the second unit for utilization in the manufacture of viscose staple fibre. They were claiming the benefit of Notification No. 217/86-C.E., dated 2-4-86 while so clearing the goods. The second unit cleared viscose staple fibre on payment of duty. The credit of duty which the appellants had taken on the inputs used in the manufacture of the caustic soda lye in the first unit was utilized for such payment of duty on the second unit s staple fibre. The Department took a view that, by virtue of the provisions of Rule 57C of the Central Excise Rules, 1944, it was not open to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvolved in the present case is not exactly the same as the one which the Larger Bench was seized of in the case of Kirloskar Oil Engines Ltd. and that the exact issue on hand has been decided in favour of assessees by 2-Member Bench of this Tribunal in the following cases :- (i) Bajaj Tempo Ltd. v. CCE [1994 (69) E.L.T. 122 (Tri)] (ii) National Aluminium Co. Ltd v. CCE [1997 (95) E.L.T. 331 (Tri)] (iii) CCE v. Unique Chemical [Final Order No. 585/97-C, dated 21-10-97 in Appeal No. E/4213/92-C] (iv) Escorts Limited v. CCE [1999 (107) E.L.T. 245 (Tri)] Drawing support from the cited cases, ld. Counsel submits that the caustic soda unit and the staple fibre unit of the appellant-company should be considered as one fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their caustic soda unit, took Modvat credit of the duty paid on the inputs used in the manufacture of the caustic soda lye which was cleared, without payment of duty, to their Staple Fibre unit, availing exemption under Notification 217/86-C.E. The credit so taken was utilized by the appellants for payment of duty on their final product viz. viscose staple fibre. The Revenue s view is that, under Rule 57C, the party was not entitled to the benefit of such credit inasmuch as the product (caustic soda lye) in the manufacture of which the inputs were used was exempt from payment of duty under the Notification. In the NALCO s case, the 2-Member Bench has held that Notification 217/86-C.E. is sui generis in giving relief to a manufacturer utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
